European and US stock indices fell on Tuesday, 9.8.2022, after reports that gas flows through the South Druzhba pipeline, which supply Hungary, the Czech Republic and Slovakia, had stopped. This is due to non-payment of transit fees. Russia blamed Ukraine.
US stocks fell due to weakness in technology. After expectations from Micron Technology for the electronic chip maker, which sent shares of semiconductor and technology makers lower. This weakness in US stocks is expected to push European stocks lower. With markets awaiting US inflation data.
Inflation in Germany rose to 8.5% as expected, while China’s CPI came in at 2.7% for the month of July, up from 2.5%.
Last June, the US Consumer Price Index rose to a 40-year high of 9.1%, fueling traders’ expectations that the US Federal Reserve will raise interest rates by 100 points. These figures sparked fear among investors about fears of a recession, after the US economy contracted in two consecutive quarters at -1.6% and -0.9%.
Commodity prices have retreated significantly from their highs a few months ago, indicating that inflation has reached its peak. This is what we will look at today 10.08.2022 with the release of the US CPI figures in July.
Economists expect the consumer price index to decline to 8.7% in July on an annual basis from 9.1% in June. The US CPI data will be released today, 10.08.2022, at 1:30 pm GMT.