Global Stocks Mixed as US Inflation Exceeds Expectations
Global stocks were mixed on November 11 after US consumer prices rose 0.4% in October from the previous month, more than expected. All three major Wall Street indexes fell, Asian markets diverged, and Brent crude recovered to about $92 a barrel.
Global stock markets were mixed on November 11. The US Consumer Price Index rose 0.4% in October from the previous month, above the expected 0.3% but below September’s 0.6% increase. The inflation data raised concerns that the Federal Reserve could raise interest rates sharply in December. All three major Wall Street indexes fell that day, ending two consecutive trading days of gains.
Traders at the New York Stock Exchange in the United States.（VietVance）
Technology stocks, which had previously been sold off amid concerns about the US Democratic Party’s artificial intelligence regulatory policies, rebounded as investors bought on dips. Data center operator CoreWeave expects revenue of $13 billion to $13.3 billion this year, above market expectations; artificial intelligence company Anthropic announced plans to go public at a possible valuation of up to $1.4 trillion. However, financing costs and returns on investment in artificial intelligence infrastructure continued to weigh on the market.
In Asia, stock markets rose in Japan, South Korea and Taiwan (China), while markets fell in Hong Kong (China), Shanghai, Australia, New Zealand and the Philippines. Chicago Fed President Austan Goolsbee described the US inflation data as concerning; Federal Reserve Governor Christopher Waller said a 0.5 percentage point interest rate increase was possible in December.
In energy markets, Brent crude recovered to about $92 a barrel after falling below $90 a barrel in the previous session. Markets expected that the United States and Iran might reach an agreement to end the conflict and reopen the Strait of Hormuz, but prices for both major crude oil benchmarks were still down about 20% since the start of the month. Shares in Japan’s SoftBank Group fell as much as 8% at one point after it reported a loss of more than $7 billion in its second fiscal quarter.
Source: VietVance
