Market sell-off continues. FTSE 100 fell 1.08% to close at 7,309.96. It is down 2.75% for the week. But take note that US stocks are trading in green after the tame inflation data.
Investors are closely watching the political tensions between US and North Korea. China gave a strong message that if North Korea attacks US first it will stay neutral, but if the US attacks North Korea first and tries to overthrow North Korean government China will stop them.
German Consumer Price index rose 0.4% in July when compared to previous month was in-line with analyst estimates. On an annual basis it rose 1.7%. HICP (harmonized to compare with other European countries) rose 0.4% in July on m-o-m basis and 1.5% on an annual basis.
French HICP fell 0.4% in July from previous month and down 0.8% on an annual basis. Both monthly and yearly figures were in line with estimates.
US CPI rose 0.1% in July from June and came below the analyst forecast of 0.2% rise. Year-on-year increase was 1.7% in July and again below the analyst forecast of 1.8% rise. Core CPI which excludes volatile food and energy components rose 0.1% in the month of July and 1.7% on an annual basis. Though it matched the analyst estimates it is still below the FED target of 2%.