US inflation frustration saw the dollar slip earlier today. Underlying US consumer inflation slowed last month partly on widespread retail clothes price-cutting. Although the headline US inflation figure landed at +0.4% – no surprise there – the core US CPI +0.1% rise was lower than the +0.2% predicted.
Core CPI is important to the likes of the US central bank, the Fed (which announces a likely rate hike tonight, 7pm – watch for words about tax cut growth and the longer term rate outlook). That’s because core CPI is a barometer of more stable price inputs, stripping out rather more volatile elements like food and energy costs.
All this helped the pound +0.39% higher (close to 4pm) against the greenback at 1.3371; against the euro the pound was +0.26% higher at 1.1371.
Newcastle football team owner Mike Ashley could be close to a deal to sell the club. Earlier this afternoon BBC Newcastle reported that British businesswoman Amanda Staveley of Staveley PCP Capital Partners was close to putting together a £300m offer.
The FTSE 100 closed tonight four points lower at 7,496.51 with Hargreaves Lansdown shares up more than +4% and Glencore up +2%. However rental outfitter Ashtead Group shares fell more than -5% and Centrica was down more than -3.5%.
- UK FTSE 100 7,496 -0.05%
- DAX 13,151.99 -0.24%
- CAC 40 5,400.08 -0.50%
- Dow 24,595.20 +0.37%
- S&P 500 2,670.01 +0.21%
- Nasdaq 6,884.66 +0.32%
- Nikkei 225 22,758.07 -0.47%
- Gold 1,246.80 +0.42%
- Oil 57.25 +0.21%
Alabama win unlikely to derail Trump tax project
Despite Donald Trump losing a vital election state, Alabama, to Democrat candidate Doug Jones – a 49.9% win over a 48.4% vote for evangelical Roy Moore – the Dow Jones continued to spur forward today. Jones’ stunning victory may mean some trickiness for Trump, specifically passing his tax legislation, a major plank of his election manifesto.
So it is a race against time for Congress to get the bill passed before Jones is sworn in, which could take some time due to ballot checking & re-checking. Key Republican Senator Bob Corker has made his unease clear about Trump’s proposed tax changes.