Economy

The Fed vs. Inflation  

 

Analyst: Positive figure for the Fed - rules out hike 

 

 Inflation in the US came in lower than expected. Several analysts now predict that the Fed will continue to relax.  

 

"Good report for the Fed, they will try to keep the odds of another hike on the table, but the market won't buy it," writes TD Securities macro manager Oscar Munoz to Bloomberg.  

 

"This means the Fed will pause in December," writes Goldman analyst Lindsay Rosner.  

 

She is supported by Charles Schwab strategist Kathy Jones, who also expects an extended break. 

 

Larry Weiss, trader at Instinet, writes to the news agency that the CPI figure means that the "higher interest rates for longer" scenario may not last as long as many had feared. 

 

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Today's stock market   

Inflation joy produced one of the year's best stock market days  

 

The Stockholm Stock Exchange recorded one of the year's best trading days on Tuesday after double happy news on the inflation front. At the close, the gain was the biggest since the rally in early February: 

 

• OMXSPI: +3.4% 

• OMXS30: +2.2%  

 

Swedish inflation increased to 4.2 percent on an annual basis in October, which was lower than expected. In the US, the CPI landed at 3.2 percent in October, which was also lower than expected. 

 

The statistics triggered a relief rally in above all the real estate sector, whose index rose over 9 percent for the day. SBB topped the OMXS30 after a rally of nearly 25 percent. Sinch rushed 17 percent.  

Kambi has received a buy recommendation from DNB, which initiates monitoring, and the share rose 9 percent.  

 

Avanza's newly appointed CEO Knut Frängsmyr has been fired after a week in the post. The reason is that he was previously sentenced to a fine in connection with a black building. The stock retreated initially but turned to plus 6 percent. 

 

On the reporting front, Enad Global 7 has shown rising profit and turnover but retreated 2 percent. Bico also strengthened the profit and loss statement in the quarter and the share surged 14 percent.  

 

The New York stock exchanges yesterday  

• S&P 500: -0.1%  

• Nasdaq: -0.2%  

• Dow Jones: +0.2%