Economic data, especially if it is inflation and particularly if it is from the US, has an outsized influence on our market. As for the updated US CPI release, the most effective way to assess its impact is two clicks away. Go to the CME website and see how its FedWatch tool changed after the release.
It remains difficult to not approach each morning by first looking at the state of equities. When the Nikkei, S&P and Nasdaq continue to make record highs on a daily basis, it is always worthy to see if the infectious bullish behaviour in stock markets is about to jump species and influence commodities such as oil. Looking for demand and that which drives it is always responsible, however, demand can accumulate from sentiment and bourses are dripping with positive vibes.
Oil prices have been on a relentless retreat over the past three days. Technical supports have
been broken under and the prospects are looking increasingly grim. This view was confirmed by
the Chinese inflation data released overnight.
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