European markets all up overnight.FTSE up 56 points (.75%), the...

European markets all up overnight.

FTSE up 56 points (.75%), the DAX rose 64 points (.38%), and the CAC rose 52 points (.68%).

UK CPI data showed lower than expected inflation for January- 4% annualised (market expectations was for 4.2%).

In the US, the DOW rose 151 points (.40%), THE NBI rose 56 points (1.31%), THE NASDAQ Composite rose 203 points (1.30%) and the Russell small cap index rose 47 points (2.44%).

Market expectations in the US are lessening for early interest rate cuts. However, interesting graph below of US inflation covering the pre-COVID period to the present.

High of 9% and now just around 3% - not that much higher than in 2020 and monetary policy has had the effect of lowering inflation. There has to be consideration of cutting interest rates before the inflation level becomes de-inflationary and starts to harm the economy.

US FED is holding to its 2% baseline, but interest rates may start falling before that 2% figure is reached.



US Treasury 10 year bond yield at 4.27%.

Oil price has dropped a bit - Brent crude at US$81.52 per barrel.

Gold price continues to soften - US$1,991 per oz.