Top World News — October 14, Update
Wall Street closed lower on Wednesday after hotter-than-expected US inflation data for September revived bets that the Federal Reserve could raise interest rates as early as October. Crypto markets slipped alongside stocks, while oil held firm near the top of its recent range.
Wall Street slides as hot CPI revives rate-hike bets
The S&P 500 fell about 0.6% and the Nasdaq dropped between 0.8% and 1.2%, while the Dow ended roughly flat, as traders reacted to September CPI coming in hotter than forecast. Odds of an October Fed rate hike jumped to around 44%, up from about 22% before the data, while December hike odds stood near 93% to 96%, according to CME FedWatch. The 10-year Treasury yield held at 5.25% after touching 5.33% in the wake of the report. Bill Adams of Fifth Third said that if Thursday’s PPI also surprises to the upside, the balance could tip toward an October hike. European markets closed higher, with London, Paris and Frankfurt all in the green in afternoon trade, while Tokyo and Seoul fell again on chip and AI-valuation worries, and Hong Kong and Shanghai ended lower despite China’s 36.3% export beat.
Crypto selloff extends after hot inflation data
Bitcoin extended its post-CPI slide to about $81,669, down 2.05% over 24 hours within a $81,641 to $84,147 range, while Ether fell 3.04% to about $2,434. The hotter inflation print, a firmer dollar and higher bond yields pressured risk assets, echoing the view at Sygnum that the rates backdrop is a near-term headwind for crypto.
Oil holds above $100 as war premium stays intact
Brent crude held around $106.60, up 0.9%, while WTI rose 1.8% to $95.79, a two-week high. The war premium remains intact amid continued regional tensions, even as scepticism around Russian diesel supplies keeps a lid on sharper moves.
Market snapshot: Bitcoin around $81,669 (-2.05%), Ether around $2,434 (-3.04%), Brent near $106.60 and WTI at $95.79. Markets now look to Thursday’s US PPI report for September and a speech by Fed Chair Warsh as the next decider, with the October 28 FOMC meeting, the October 15-16 EU summit and the November 3 midterms also ahead.