Business news: Markets recover from US CPI data
By Jenny McCall
15:13, 13 January 2022
Key points
- The number of US citizens filing new claims for unemployment benefits has risen in the last week as Covid-19 infections also increased. Claims for state unemployment benefits rose to a seasonally adjusted 230,000 for the week ended 8 January, the US Labor Department announced today.
- Global financial markets started to stabilise today after the US reported its highest reading for inflation in nearly 40 years. The 7% year-on-year US consumer price inflation reading was the highest since 1982, leading many to think that the US Federal Reserve will have no choice but to tighten monetary policy.
The coverage of US inflation on some of the front pages. (Worth monitoring as this is one of the many factors influencing the formation of inflationary expectations.)#economy #inflation pic.twitter.com/YJJiz4nu9F
— Mohamed A. El-Erian (@elerianm) 13 January 2022
Top business and economic news today
- The stock prices for both Tesco and Marks and Spencer fell in early morning trading, even though the retailers reported better-than-expected Christmas sales. Investors still showed concerns over inflationary pressures that may impact retail sales in the next few months.
- Delta Air Lines rose over 2% today after the airline beat estimates for the fourth quarter.
#TSCO Tesco Q3 & Christmas Trading Statement today. Stating they outperformed the market, grew market share & expect retail operating profit slightly above the top end of previous guidance range. Despite all this, share price is down a touch today. https://t.co/Qfjbrafi7t pic.twitter.com/aFLkVRPtwu
— Tony Watson (@tonywatsonm) 13 January 2022
Markets this week:
- Stocks: UK stocks were down today, with major supermarkets falling in early morning trading.
- Oil: Oil prices eased today. Brent crude was trading at close to $85 a barrel.
- Gold: Gold prices were steady on Thursday, as investors waited for more clues as to whether the US Federal Reserve will hike rates due to high inflation.
- Forex: The dollar continued to slip toward a two-month low, and the euro was up 0.3% today, as currencies reacted to the Consumer Price Index data from the US.
- Crypto: Bitcoin fell 0.54% today, and ethereum also dropped 0.02% in early morning trading.
What to watch this week:
- Investment bank JPMorgan will release its fourth-quarter earnings tomorrow.
Read more: Will 2022 be the comeback year for UK hospitality sector?
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