The CPI fully meets expectations, alleviating market concerns about a slowdown in interest rate cuts

The US CPI data for October, announced last night, fully met market expectations and did not cause much turbulence in the market. However, the data performance has boosted the market's confidence that the Federal Reserve will cut interest rates again next month. The probability of a 25 basis point rate cut in December is expected to increase from about 58% earlier on Wednesday to about 80%. According to 4E monitoring, U.S. stocks wavered on Wednesday with all three major indices initially falling before rebounding and rising again; however, gains significantly narrowed by close and Nasdaq ended lower. The SP500 rose slightly by 0.02%, Dow Jones increased by 0.11%, while Nasdaq fell by 0.26%.

The "Tech Seven Sisters" had mixed performances while most cryptocurrency concept stocks retreated after a brief adjustment period but regained momentum afterwards. Bitcoin broke through an important threshold of $90k last night reaching as high as $93,265 before retreating after hitting a new historical high; at press time it was trading at $89,586 USD per coin making its current market value surpass Saudi Aramco becoming the seventh largest asset globally . Meme coins continued their upward trend leading all sectors and becoming investors' focus.

In terms of forex commodities post-CPI release: dollar index first fell then rose reaching its highest level since October last year putting pressure on other currencies causing offshore RMB to fall below ¥7.25 yuan mark; oil prices rebounded more than +0.45% hovering around two-week lows; both dollar US bond yields climbed putting pressure on gold price which fell for fourth consecutive trading day touching nearly two-month low levels.The consistent CPI data with expectations increased chances of Fed cutting rates again in December helping alleviate some concerns over inflation outlook post-Trump election victory.

Currently markets are focusing on Thursday's PPI figures weekly initial jobless claims numbers along with Friday's retail sales data as well as comments from Fed Chairman Powell and other Fed officials.