August 11, 2022 – The nickel on the LME had yesterday reacted exceedingly positively to the lower US inflation and made a jump upwards. Nickel futures on the SHFE have risen even more today. Also otherwise, the markets take the lower inflation as a positive signal and are majority and partly significantly turned into the plus.
Nickel makes jump upwards
Already on Wednesday, the nickel values on the LME had made a leap upwards and closed with almost 4% in the plus. The for many analysts surprisingly good inflation data from the United States, had revived the market yesterday and besides nickel, also the other base metals turned into the plus.
SHFE nickel follows suit
The nickel contracts on the Asian SHFE have then also pulled today, Thursday, and have risen in part by more than 5.5%. Also for aluminum, copper and zinc it goes further up. As well as for iron ore, hot-rolled coil and stainless steel futures.
Markets react positively to US data
The U.S. and European stock markets had reacted positively on Wednesday to the significantly lower inflation rate in the United States. And also many Asian stock exchanges point on Thursday neatly into the plus. For the Chinese Hang Seng it goes up currently by more than 2.1%. For the Shanghai index by about 1.4% and the Taiwan Weighted by over 1.7%.
United States: Inflation rate slips
The US inflation rate in July dropped significantly from the previous month’s 9.1 percent to 8.5 percent year over year. The decrease in energy costs from the previous month was the primary factor in the reduced inflation trend.
Fireworks on the financial markets
The price of gasoline alone decreased by 11%. Following the release of the inflation statistics, there was a veritable price fireworks on the financial markets. At their high, two-year government bond yields decreased by more than 0.2 percentage points. Given the easing of price pressure, investors anticipate fewer interest rate increases at the Fed’s next meetings.
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