U.S. Inflation Report Sparks Market Movements

The delayed U.S. inflation report, released under exceptional circumstances during a government shutdown, has provided critical insights into the financial landscape. Core CPI monthly figures came in at 0.2%, slightly below expectations, while annual Core CPI matched forecasts at 3%. These numbers arrive ahead of the Federal Reserve's anticipated 25 basis point rate cut decision next Wednesday.

Market pressures loom large. A 5% spike in oil prices due to Russian sanctions threatens to exacerbate inflationary trends. The October 30 Trump-Xi meeting represents a final opportunity to avert further price surges, with the U.S. poised to impose 155% tariffs if negotiations fail. Such measures WOULD likely trigger Chinese counter-tariffs, creating reciprocal export restrictions that could amplify inflation.

The crypto markets, always sensitive to macroeconomic indicators, may see increased volatility as traders digest these developments. Bitcoin and other major cryptocurrencies often serve as inflation hedges during periods of monetary policy uncertainty.