???? The CPI data took the markets to the clouds

The Consumer Price Index, (CPI) which measures inflation showed annual inflation eased to 7.7% in October according to The data, slowing for the fourth straight month and below analyst expectations of 8%. The underlying readings also surprised to the downside, putting downward pressure on the dollar and Treasury yields and moving money markets to price the Fed's terminal rate below 5%, with yields falling further in one day in a decade.

MARKETS

Major US stock indices rallied to the close on Thursday after cooler-than-expected inflation raised hopes the Federal Reserve could ease the pace of rate hikes in upcoming meetings. The Dow shot up around 1,200 points and the S&P 500 added 5.6%, with more than 90% of stocks trading in the green. Meanwhile, the Nasdaq 100 rose 7.5%, the most since April 2020. The Shanghai Composite jumped 1.69% to close at 3,087, while the Shenzhen Composite rose 2.12% to 11,140. on Friday, from recent lows after China eased some Covid rules by reducing the quarantine period for travelers and close contacts of infected people.

The data showed annual inflation eased to 7.7% in October, slowing for the fourth straight month and below analyst expectations of 8%. The underlying readings also surprised to the downside, putting downward pressure on the dollar and Treasury yields and moving money markets to price the Fed's terminal rate below 5%, with yields falling further in one day in a decade. Consequently, policy-sensitive growth and technology stocks led gains with Amazon, Meta, Nvidia and Alphabet rising between 8-14%.

COMMODITIES

PRAYED: Gold prices rose 2.78% to approach $1,753 an ounce on Thursday, after a lower-than-expected US inflation reading pushed the dollar lower amid prospects that the Fed will not have to tighten monetary policy much further. Most investors now expect a 50bp rate hike next month instead of another 75bp. The aggressive tightening campaign by central banks in major economies, as well as China's ongoing battle against resurgence of Covid outbreaks, also stoked fresh concerns about a global recession. While gold is widely seen as a hedge against inflation and economic uncertainties, higher interest rates increase the opportunity cost of holding non-performing bullion,

FOREIGN EXCHANGE

Swiss franc: The Swiss franc strengthened past $0.97 per USD, appreciating nearly 5% since hitting a 3.5-year low of 1.01 per USD on November 3 as cooler-than-expected inflation in the US it made a dent in the demand for dollars. Domestically, investors continued to weigh the extent to which the SNB will tighten monetary policy as inflation also slows. The latest data points to 3% annual price growth in October, well below central bank expectations of 3.4% and market forecasts of 3.2%, marking a second consecutive decline since the 29-year high of 3.5% hit in August. Meanwhile, the unemployment rate also beat expectations at 1.9% in October, holding at a 21-year low. Even so, SNB Governor Jordan signaled the need for another rate hike as inflation expectations remain elevated over the medium term. The SNB raised its policy rate by 75bp at its last meeting, pushing borrowing costs into positive territory for the first time since 2011.

Chilean Peso : The downward pressure continues for the Chilean peso dollar and without a doubt that yesterday the CPI data from the United States this time generated strong downward pressure for the dollar index which is currently around the area of 107 pts, a significant drop after reaching highs of 115 in September. On the other hand, the strong rise in copper also generated the appreciation of the national currency, which broke the support of $900 pesos and came very close to the area of $875 pesos, which is a zone of great support and which once was a great resistance. It should be remembered that after the votes for a new constitution, the national currency reached levels below $850 the following day at the opening.

CRYPTO MARKET

Tether freezes $46 million USDT from FTX, setting a new precedent. According to blockchain transaction data provided by WhaleAlert on Nov. 10, Tether appears to have frozen $46,360,701 USDT owned by troubled cryptocurrency exchange FTX on its Tron blockchain wallet. The move comes a day after the US Securities and Exchange Commission and the US Department of Justice began investigating FTX over its liquidity crisis.

Ethereum whales go straight to the market to load their bags as ETH falls to “discount prices”. Like the rest of the cryptocurrency market, Ethereum has taken a beating, falling more than 20% in the last three days. As panic continues to spread through the market, the whales have loaded their assets with more than 600,000 ETH.