MARKETS: Asia clearly on the rise after yesterday’s inflation report

Yesterday, the United States received an inflation report for November that was better than the market expected, although it was exactly what economists had expected.

Stock futures turned higher after the release, and the general index S&P 500 finally closed up 0.8 percent.

US inflation was 2.7 percent in November, which was also within the expectations of the consensus of economist forecasts collected by the news agency Bloomberg. In October, prices rose by 2.6 percent from October last year.

The basic consumer price index rose by 3.3 percent in November, while economists had expected a 3.3 percent increase. In October, consumer prices without the effect of food and fuel rose by 3.3 percent.

In November, both price indices rose by 0.3 percent from October, in line with expectations.

According to the news agency Bloomberg, the market has now fully priced in the fact that the US central bank, the Fed, would cut its key interest rate by 25 basis points at its next meeting. Just a week ago, the probability was 75 percent.

Asian markets were also almost without exception on the rise on Thursday. The CSI 300, which describes the performance of the most traded shares in Shanghai and Shenzhen, had risen by 0.8 percent, while in Hong Kong the Hang Seng was up 1.5 percent.

In Korea, the Kospi had risen by 1.3 percent and in Japan, the Nikkei by 1.5 percent.

Today, the European Central Bank ECB issues its interest rate decision. Investors expect the policy rate to be cut by 25 basis points. Another 25 basis point cut is given a five percent probability.

At 08:08, the euro fetched 1.05 dollars, 160.4 yen, 0.82 pounds and 11.5 Swedish kronor. The dollar was 152.6 yen and the pound was 1.28 dollars.

Futures forecast a bearish opening for Wall Street, but Europe would open to a rise like Asia. S&P 500 futures for December were down 0.2 percent, while their Euro Stoxx 50 counterparts were up 0.1 percent.