The November Inflation Reports in the US Have Been Released: How Did Bitcoin and Global Markets React?

• The latest consumer price index shows a 3.1% increase in prices through November compared to the previous year, aligning with general expectations.
• The monthly CPI, surpassing the 0.0% expectations, was reported at 0.1%. Core CPI data is as follows: Monthly expectation 0.3% – Reported 0.3%. Yearly expectation 4.0% – Reported 4.0%.
• Futures have risen slightly. Dow futures showed a modest increase, with the blue-chip index closing near its highest level in almost two years on Monday.

The eagerly anticipated inflation reports for November have been released in the US: How are global markets reacting to inflation data?

US Inflation Report Published

The latest consumer price index shows a 3.1% increase in prices through November compared to the previous year, aligning with general expectations. The index increased by 0.1% from the previous month, slightly above the expected flat reading. This closely watched report is one of the final data points before the Federal Reserve’s policy decision on Wednesday afternoon.

Tuesday’s released inflation data is expected to provide the most up-to-date evidence that price increases have significantly slowed since the peaks in June 2022. This suggests that the Fed may be inclined to keep interest rates steady when it gathers for its last meeting of the year on Wednesday.

The Consumer Price Index was released as the Fed’s two-day meeting began; following the meeting, a decision on interest rates and a new set of quarterly economic projections will be announced on Wednesday. Fed Chair Jerome H. Powell will then hold a press conference.

The monthly CPI, surpassing the 0.0% expectations, was reported at 0.1%. Core CPI data is as follows: Monthly expectation 0.3% – Reported 0.3%. Yearly expectation 4.0% – Reported 4.0%.

How are global markets reacting?

Futures have risen slightly. Dow futures showed a modest increase, with the blue-chip index closing near its highest level in almost two years on Monday. Oracle and Alphabet were notable pre-market movers.

Bond yields declined further. The yield on the benchmark 10-year note traded below 4.2%. Overseas stocks rose. France’s CAC 40 index moved toward a record closing level. Hong Kong’s Hang Seng Index rose about 1% after closing at its lowest level of the year on Monday.

Oil prices fell. A Norwegian tanker was hit by a missile fired by Houthi rebels off the coast of Yemen, reigniting concerns about shipping disruptions in the Middle East.

Bitcoin recovered somewhat after its worst day. The cryptocurrency bounced back to around $42,000 after dropping more than 6% on Monday. Bitcoin is currently trading at around $41,940.