Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
After a report showed that inflation in China strengthened in January with the consumer price index reaching 2.5 percent y/y and producer price index reaching 6.9 percent y/y, which is the highest in five years, further reports confirmed that the return of inflation is likely to be a global phenomenon.
- German inflation report confirmed 1.9 percent price growth y/y in January, which is well within the target of the European Central Bank (ECB).
- Retail price index (RPI) in the UK jumped to 2.6 percent y/y in January. Producer price index for output rose by 3.5 percent y/y. Weak pound pushed the input cost to rise 20.5 percent y/y. House price index is up 7.2 percent y/y. Compared to the above the rise in consumer price index was small, it rose by 1.8 percent y/y.
- In Switzerland, the economy returned to positive yearly inflation for the first time since 2014. The consumer price rose by 0.3 percent y/y, producer and import prices rose by 0.8 percent y/y.
This rise in inflation is likely to continue for some time now. We expect the increasing price of commodities to support the increasing inflation, especially metals and agriculture.
