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The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 7.7% on a yearly basis in October from 8% in September. The CPI data came in below the market forecast of 8% and spurred bets the Federal Reserve can downshift its aggressive rate-hike path. Therefore, risk-on flows came back to life and provided strong support to the equity Marketcap. Marketcap are now pricing in an 80% probability of a 50 basis points rate hike in December following the upbeat US CPI report.
Global equity Marketcap sensed an intense sell-off amid headwinds of the US mid-term elections outcome and upside risks from the inflationary pressures. Investors’ attention now shifts toward the closely watched US inflation report due Thursday after midterm elections failed to deliver a Republican sweep.
Bitcoin plummeted to a fresh 2022 low at $18,355 amid the collapse of FTX and Binance’s decision to save the crypto exchange. The mini-crash in Bitcoin has weighed on the stock market and caused a sharp drop as investors don’t like to see any disruptions in any risk asset.
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