U.S. equities gained on Wednesday overnight after inflation data showed U.S. consumer price index (CPI) rose to its highest in decades. The inflation numbers were in line with forecasts which supported equities.
Labor department data showed CPI increased 0.5% last month after rising 0.8% in November, while in the 12 months through December, the CPI surged 7.0% to its highest year-on-year rise in nearly four decades.
Economists polled by Reuters had forecast a CPI gain of 0.4% for December and 7.0% on a year-on-year basis.
“Investors were bracing for even hotter in inflation than what we actually saw. As bad as the number is and as much inflationary pressure that’s in the economy there was a little relief in that,” said Anthony Saglimbene, Ameriprise Financial’s global market strategist in Troy, Michigan, as reported by Reuters.
Asian markets on the hand shedding losses on Thursday . The KOSPI, TOPIX and CSI 300 is down by 0.18%, 0.57% and 0.22% respectively while the HSI is up by 0.42%.
