Since the current market rhythm is basically locked - a 25 basis point interest rate cut next week, everyone seems to be no longer interested in economic data in the short term, and so am I.
The data ignored tonight are the number of initial unemployment claims and PPI data for the week.
The number of initial unemployment claims for the week was 230,000, in line with expectations and higher than the previous value. It was the first data increase in the past three weeks, and the labor market was cooling down. This data is more in line with the gradual slowdown of the US economy.
The PPI producer price index recorded an annual rate of 1.7%, lower than expected and the previous value. At the same time, the data for July was revised down, with a monthly rate of 0.2%, higher than expected by 0.1% and higher than the previous value of 0%.
The data shows that the year-on-year growth of the producer price index slowed down, and the month-on-month growth increased slightly. The data basically confirmed yesterday's CPI data.
Originally, CPI data was closely related to PPI data and was also an important data released in the same week.
However, since the focus of both the Federal Reserve and the market has shifted from inflation to employment, and the expectation of the first interest rate cut is currently locked at 25 basis points, the market's attention to this data has dropped significantly.
Looking at the performance of CPI last night, the attention was also very low. Favorable data could not attract market attention, while unfavorable data would cause concerns.
It seems that before the interest rate cut, only if there is a possibility that the first interest rate cut will be increased to 50 basis points without causing an economic recession can it attract market attention.
