Market Snapshot – Markets Slightly Damp on Bad Inflation Data

Yields Lower

The inflation data from the US came in weaker than expected and this has affected the US treasury yields at this point of time. This is also likely to be a large blow for the dollar which had been on the rampage over the last few days and the dollar bulls would have hoped to continue on their journey for the next few days as well. For that, it was important that the inflation data came in in a strong manner. The reason is that the employment data in the form of NFP had been failing over the last couple of months and this has brought in some doubts over the actual strength of the economy. So, the inflation data was watched in a very close manner and the fact that it has also come in with a weaker than expected data should pose a serious question mark on the US economy in due course of time. The market are also expected to respond in kind to the data so far though they had a strong close yesterday.

Strong Earnings

It is the earnings season in the US and we have been having the quarterly results from a variety of companies yesterday with GoDaddy posting some strong numbers for the quarter that just got completed. This should help to boost the markets for the short term though the overall economy is yet to throw up many strong numbers in due course of time. The market is likely to face some uncertain times during this period. The investors need to make sure that they dont get carried away by all the news around them and ensure that they wait and watch the markets before they make a call in taking the right direction. It is likely that the markets would be choppy in the short term and hence it is important for the traders to ride out this wave and wait for the next one.