The New York Stock Exchange is set to open lower on Tuesday morning, affected by inflation figures showing a less pronounced than hoped-for decline in US consumer prices.

Half an hour before the opening, futures on the main New York indices were down by 0.9% to 1.7%, suggesting that the session could start in the red.

According to the Labor Department, the US consumer price index rose by 3.1% in January compared with the same month in 2023, an annual rate 0.3 points lower than in December 2023.

However, this statistic exceeded the consensus of analysts, who were hoping for a return of the indicator to below 3%, in line with the Fed's 2% target.

Investors are thinking that this slower-than-expected slowdown in inflation could reinforce the Federal Reserve's patient, wait-and-see approach, dependent on the evolution of economic data.

"This means that the Fed could extend its 'wait and see' approach before committing to a rate cut soon, an attitude in line with its most recent comments", comments Neal Keane, Head of Trading at ADSS.

With inflation decelerating, the Fed is still riding the 'Goldilocks' scenario, even if the theory of a 'soft landing' for growth has now been replaced by one of 'no landing at all'", points out the professional.

While the scenario of a rate cut in March now seems 95% ruled out by the markets, that of monetary easing in May has also taken a back seat, and investors are now looking ahead to a first rate cut in June.

On the fixed-income market, the yield on ten-year US bonds gained more than ten basis points to almost 4.28%, its highest level for almost three months.

On the currency front, the dollar regained ground, pushing the euro down to around 1.07 against the greenback, again at its lowest level since November.

Market players failed to take comfort from the contrasting quarterly results published this morning by several major stock market players.

Among the pleasant surprises, Coca-Cola reported a 10% increase in fourth-quarter earnings, thanks to organic growth of 12%.

Toy manufacturer Hasbro, on the other hand, unveiled results well below expectations for the fourth quarter and expressed caution for its 2024 financial year.

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