GTC Chief Analyst Jameel Ahmad Joins France24 | Inflation Data Spurs Volatility, US and EU Policies

Summary: Global markets experienced significant fluctuations on Wednesday after the release of US inflation data. GTC Chief Analyst Jameel Ahmad highlighted that this week’s frequent market volatility is primarily due to the US Consumer Price Index (CPI) coming in lower than expected. The annualized CPI data was 2.5%, compared to the market’s expectation of 2.6% and a previous figure of 2.9%. This lower-than-expected data has reduced the market’s expectation for a 0.5% interest rate cut by the Federal Reserve next week, leading to a sell-off. However, in the medium term, the Fed is still expected to continue cutting rates, which has encouraged some investors to return to the stock market.

Global markets saw significant movements following the release of US inflation data on Wednesday. GTC Chief Analyst Jameel Ahmad pointed out that this week's market volatility is largely driven by lower-than-expected US Consumer Price Index (CPI) data. The annualized CPI came in at 2.5%, below the expected 2.6% and down from the previous 2.9%. This result dampened expectations for the Federal Reserve to cut rates by 0.5% next week, causing a market sell-off. However, in the medium term, the Fed is expected to continue its rate-cutting cycle, leading some investors back into the stock market.

Regarding the US presidential debate, market reactions were relatively muted. Jameel Ahmad noted that this is mainly because Kamala Harris’s chances of winning have increased, with the market seeing her as a candidate who would maintain the status quo. On the other hand, if the former president returns to office with more aggressive policies, market volatility could intensify.

Additionally, the European Central Bank (ECB) is set to announce its interest rate decision soon. Jameel Ahmad predicts that the ECB will cut rates again, marking the second cut this year. With the annual inflation rate now down to 2.2%, the ECB has made significant progress in controlling inflation. However, due to weak economic data from both China and the US, Ahmad expressed concerns over growth targets. He believes the ECB may face increasing pressure to take more aggressive action by the end of the year and into 2025.