SGX Nifty Falls ‘350 Pts’, Touches 16,750 as US CPI Fails to Calm the Markets!
The much-awaited US CPI data for September 2022 is out with yet another YoY downtick in inflation to 8.2% from 8.3% in August 2022. However, despite a small sign of easing inflation, market participants didn’t seem to get impressed with the rate at which inflation is coming down as the majority of the analysts were forecasting a print of 8.1%. The US Fed has already been quite aggressive this year with increasing interest rates and such a slow pace of falling prices is only pointing to continued aggression in ramping up fed fund rates.
Soon after the headline numbers, the US tanked at a blazing speed and cracked 1.67% to below 28,750, that’s an inch away from the 52-week low. Along with it the and the also took a hard hit as equity market selloff got triggered in a jiffy. Not just shares, bullions – and silver also plunged into the red zone, trading a cut of over 1% each.
The witnessed a sharp jump to over 113.6, as expected because the longer the inflation would stay beyond the tolerance band of the US Fed, the more aggressive it will be to increase interest rates which would further accelerate the global fund flow to the US dollar. Although it would be too early to say, another 75 bps hike could be there on the cards in November 2022 which would probably make the current regime of rate hikes, the steepest in the history of the US. As a result of the dollar index shooting up, the also shot up quite fast and currently trading above 82.6 in the international market.
As the CPI data has painted a gloomy picture for the entire global market once again, the was also not spared. The proxy to the plunged quite hard, over 350 points and sliced through the support of 16,800 like a hot knife slices through butter. Currently, the SGX Nifty is trading 2% down at 16,762, by 6:46 PM IST. Tomorrow would definitely be a huge gap-down day and if the market sustains below 16,800, then, there would probably be no hope left for the bulls to see a level of 17,500 in the remainder of October 2022. Today’s surprise for the bulls would again emphasize the importance of a hedged position during these extremely uncertain times.
The much-awaited US CPI data for September 2022 is out with yet another YoY downtick in inflation to 8.2% from 8.3% in August 2022. However, despite a small sign of easing inflation, market participants didn’t seem to get impressed with the rate at which inflation is coming down as the majority of the analysts were forecasting a print of 8.1%. The US Fed has already been quite aggressive this year with increasing interest rates and such a slow pace of falling prices is only pointing to continued aggression in ramping up fed fund rates.
Soon after the headline numbers, the US tanked at a blazing speed and cracked 1.67% to below 28,750, that’s an inch away from the 52-week low. Along with it the and the also took a hard hit as equity market selloff got triggered in a jiffy. Not just shares, bullions – and silver also plunged into the red zone, trading a cut of over 1% each.
The witnessed a sharp jump to over 113.6, as expected because the longer the inflation would stay beyond the tolerance band of the US Fed, the more aggressive it will be to increase interest rates which would further accelerate the global fund flow to the US dollar. Although it would be too early to say, another 75 bps hike could be there on the cards in November 2022 which would probably make the current regime of rate hikes, the steepest in the history of the US. As a result of the dollar index shooting up, the also shot up quite fast and currently trading above 82.6 in the international market.
As the CPI data has painted a gloomy picture for the entire global market once again, the was also not spared. The proxy to the plunged quite hard, over 350 points and sliced through the support of 16,800 like a hot knife slices through butter. Currently, the SGX Nifty is trading 2% down at 16,762, by 6:46 PM IST. Tomorrow would definitely be a huge gap-down day and if the market sustains below 16,800, then, there would probably be no hope left for the bulls to see a level of 17,500 in the remainder of October 2022. Today’s surprise for the bulls would again emphasize the importance of a hedged position during these extremely uncertain times.