- European stocks close flat
- US core CPI fell more than expected
- USD under pressure, precious metals are gaining
European indices finished today's session in mixed moods, with mining, banking and luxury goods sectors leading losers, while tech stocks rose. Frankfurt's DAX 30 rose 0.1% and Milan's FTSE MIB gained 0.4%. Meanwhile, London's FTSE 100 fell 0.5% and Paris' CAC 40 and Madrid's IBEX 35 lost 0.4% each.
US indices are trading lower as investors digested today's US CPI figures, which showed a smaller than expected increase in core consumer prices, which may be a sign that inflation in the US has reached a peak, although it may remain high for some time as supply constraints persist. Today's report has certainly brought relief to the Federal Reserve, which may delay plans to begin scaling back stimulus. However, comments from some economists suggest the central bank may still begin tapering its asset purchases in December.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appToday’s inflation figures led to weakening of the US dollar. The EURUSD currency pair jumped to 1.1842 today, but has already erased some gains while the USDJPY pair reached its lowest level in two weeks. The yield on the benchmark 10-year Treasury note fell below 1.28%, the lowest since the end of August. The situation in the debt market and weaker dollar support gold, the price of the precious metal jumped above $ 1800 per ounce. WTI crude fell 0.2%, while Brent is trading 0.10% lower as investors balance worries over slowing demand recovery due to Covid-19 and signs of further supply disruptions as another storm could affect output in Texas this week.
Tomorrow, investors will face another intense day - important economic data will be published from China (e.g. industrial production and retail sales) and the USA (industrial production). European countries will release inflation data for August.

USDJPY pair fell below the recent local lows after the release of US inflation data. If the current sentiment prevails then downward move may be extended to the 109.40 handle or even support around 109.15. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.