Moo Spotlights | America's CPI & PPI released. How will it impact on Aussie's life?
Hi mooers! ![]()
This week, global investors are all paying attention to 2 big things:
The release of US August CPI & The release of US August PPI
Why are they so important? ![]()
What will they impact on our Aussies' Lives? ![]()
Keep reading:
📚 What you should know about these indexes
What is CPI & PPI? ![]()
Learn them through the sidebar directory in one page>> Key Economic Indicators That Matter
The US August CPI posted at 2.5%, marking the lowest level since February 2021, down from 2.9% in July and falling below the anticipated 2.6%. For PPI, the number is 144.85.
Currently, the likelihood of a 25 basis point rate cut in September appears high, while the possibility of a 50 basis point cut has significantly diminished.
Regarding the monetary policy path for the coming year, we believe that market expectations for rate cuts may be overly optimistic, particularly considering that the risks of an economic recession have not fully manifested. If future data continues to indicate a robust economy, rate cut expectations may be further adjusted.
On Thursday, the European Central Bank cut the Eurozone's official interest rate by 0.25% for the second time this year, now standing at 3.50%. Additionally, the recent US inflation and unemployment data have further strengthened the prospects of a Federal Reserve rate cut in the coming week.
As stated in the previous article, there are also other factors driving gold prices this year, including rising geopolitical tensions and the increase in gold reserves by central banks around the world.
Once the Fed starts cutting rates, global liquidity will get a boost, and global capital tends to flow into emerging markets, further driving up the prices of stocks and bonds in those markets. In July, global funds flowing into emerging market stock and bond portfolios reached $36.5 billion, with $29.4 billion going into the bond market and $7.1 billion into the stock market. Against the backdrop of the Fed's rate cut, the global asset investment in emerging markets is heating up.
Well, it is believed that most of mooers are aware of the significant role NVDA plays in the US stock market. ![]()
Nvidia CEO Jen-hsun Huang announced the plan to expand production in Q4 due to high demand for Blackwell at Goldman Sachs conference. He also forecasted ongoing acceleration in AI computing innovation, with Nvidia aiming for major performance gains biannually. The company's market cap closed at $215.8 billion that day.
You can look through the heated events these days by @Jessica Amir's article Two jet packs combine: Nvidia, Fed cuts
Firstly, annual core inflation matched expectations (+3.2% YoY), validating that the Fed can cut rates by 0.25% next week as expected......
Then, Nvidia CEO Jensen Huang amped up the second jet pack for stocks when he revealed at a Goldman Sachs conference that demand for their latest tech is "so great" it's making customers tense......
Plus, risk-on sentiment got a boost with Blackstone's CFO saying they're optimistic about a soft landing and that inflation is basically at target...Looking ahead, the futures suggest the Aussie share market will follow Wall Street and rise 0.7%.
@June July: "Strong TA signal for upside: Parabolic SAR indicating reversal with grey dot along with oversold conditions near lower Bollinger line."
@No idea: "It is obvious that a new wave of uptrend has begun. The current question is whether it can break through the high point of $140. In the short term, there are still many uncertainties, such as the yen carry trade issue, crude oil issue, uncertainty of interest rate cuts, and Blackwell's issue. But there is no doubt that Nvidia's long-term prospects are very good."
@2nddeltoro: "Rejected MA10, heading down from here. Prob 97 then test 90 in the coming days"
"CPI cool down to 2.5% in Aug, lowest level since 2021. It is a good signal for the markets. I was looking through option flows of unusual activity last night and found that $2.3 billion in total in premiums was paid last week for SPX calls for 06/20/25 with a strike of 4000 and 5000. It is strategy call long deep-in-the-money long-term call, since SPX is now trading around 5500. Why would someone buy $2.3 billion for an option instead of buying stock or index itself? What are the advantages and potential risks associated with this strategy?" Read more>>
"With the recent US inflation data, hopes of a large rate cut by the Federal Reserve next week have dissipated. How will this affect Australian equities?
Markets traditionally rally in rate cut cycles, and commodities tend to benefit as well."
Are these sharings from Aussie mooers helpful? Tell us by comments! ![]()
What's your planning movement about your portfolio after knowing these information? @All mooers whose portfolio contains US stocks and financial products
We will pick up to 15 high-quality comments and send each of the commentator 200 points as the interaction incentives.🎁
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mr_cashcow : In AI we trust, same play again as there is no doubt nvidia's chips are still in high demands from the various companies buying the golden shovel from them to get their language learning model running and they will need to constantly upgrade their chips to keep up with competitors trying to build their own ai models so personally I would keep a very close eye on nvidia
102362254 : After reviewing the CPI and PPI data, I’ll assess the impact on inflation and production costs and adjust my portfolio accordingly. My focus will remain on maintaining balance and diversification while being responsive to emerging market trends. To manage risk, I’ll also allocate more ETFs to my investment portfolio.
102514703 : For two consecutive days, the stock market has been turned around by Lao Huang's words.
Stock Grader : Thank you @Moomoo AU
Moomoo AU OP Stock Grader : Keep moving ahead!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ZnWC : Thanks for the investment information![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
My next move:
1. As information is vital in making a better decision, it is still important to verify with fundamentals.
2. My practice is to use more than one indicator to decide if a trade is viable -DYODD
3. Stay disciplined to the investment goal and always have an exit P/L plan. Avoid panic selling (fear) and FOMO buy (greed).
4. To reduce volatility risk, I diversify my portfolio - don't put all eggs in one basket
5. May sell/buy options for short term investment at calculated risk
dynamic-stacker : AI is still on the trend of rising. still needs time to become practicable and applicable to average people in daily lives, in fact could take several more years to lower costs etc
my eye is on AI Quantum, that will lower the costs of AI Much lower, due to the exponential power of superposition in quantum mechanics.
by then, the AI Quantum age hopefully cost of living will be lower since most mundane things are automated, people hopefully, under leadership of new leaders can get high value jobs rather than just manufacturing
151741270 : In AI we trust, same play again as there is no doubt nvidia's chips are still in high demands from the various companies buying the golden shovel from them to get their language learning model running and they will need to constantly upgrade their chips to keep up with competitors trying to build their own ai models so personally I would keep a very close eye on nvidia
151629857 : Though there has been a heated discussion about money to flow from big giants to small companies, but I believe that big giants will always get bigger eating up more. Thus I trust their growth and will take the opportunity to contribute into their stocks and related ETFs.
151390635 : magnificent
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