Source: CCTV Finance and Economics
On Friday, local time, although core inflation indicators in the United States in August showed that the inflation problem was still grim, good news came from COVID-19 's mid-term oral trial, which prompted the economic restart of the US stock market and cyclical stocks to rebound sharply. The three major US stock indexes closed higher on the first trading day of October.
The year-on-year growth rate of core inflation in the United States hit a 30-year high in August.
A number of indices released on Friday showed that the problem of rising inflation in the United States is still intensifying. The data show that the US personal consumption expenditure index (PCE) rose 4.3 per cent in August from a year earlier, the largest year-on-year increase since 1991, while core PCE rose 3.6 per cent year-on-year in August, the same as the highest year-on-year growth since 1991. This data clearly echoes the view that inflation may continue to rise into next year, which has been frequently reported by the Federal Reserve recently. The US manufacturing sector continued to expand in September, according to two major manufacturing purchasing managers' indices (PMI) released on Friday, but rising raw material prices and supply bottlenecks have led companies to raise prices, shifting upward pressure on prices to consumers.
The good news from Xinguan oral medication promotes the rebound of economic recovery stocks.
Although the economic data are negative, the pharmaceutical giant Merck & Co Inc reports that the oral drug COVID-19, which it has jointly developed with its partners, can reduce the hospitalization rate and risk of death of patients with mild or moderate COVID-19 by 50 per cent. Boosted by the news, not only Merck & Co Inc himself rose 8.4%, but also energy, materials, and financial sectors sensitive to economic recovery rose significantly, pushing the three major stock indexes to rebound.
Inflation in the euro zone continues to be high. Europe's three major stock markets fell on October 1st.
In the European market, investors reacted more strongly to inflationary pressures. Data on Friday showed that euro zone CPI rose by a better-than-expected 3.4% year-on-year in September, the highest since September 2008, driven by soaring energy prices and price levels. Affected by this, the British, French and German stock markets closed lower collectively.
International oil prices rose on October 1st
In the crude oil market, international oil prices rose significantly on Friday, driven by a weaker US dollar and continued tight supply in the market. Investors are turning their attention to OPEC +'s meeting next Monday. Recently, the world's major oil consumers, such as the United States and India, have repeatedly called on OPEC to further increase production in order to reduce the risk of economic overheating caused by soaring energy prices.