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Solid CPI Puts Equities on Backfoot

EQUITIES
  • A multi-decade high inflation reading from the US put stock markets on the backfoot Wednesday, with hot inflation underpinning concerns that the Fed could move to hike rates sooner than previously expected, or at least accelerate the tapering pace of their asset purchase programme. The e-mini S&P came under pressure upon release, leading to a negative open at the bell.
  • Markets appeared to find bottom alongside the strong reception for the Rivian IPO, with early indications showing very firm demand. The stock was indicated to open at $125 (and climbing) against an IPO price of $78. The ramp higher in opening price for the company coincided well with the recovery off the lows in both the NASDAQ and S&P futures. Rivian's IPO is the largest of the year, and the sixth largest US IPO of all time. Investors set to benefit include Amazon and Ford, both of which traded solidly following the bell.
  • European markets were more positive, with UK's FTSE-100 leading gains with a rise of 0.9%, while upside in the likes of the German DAX and French CAC-40 were more muted.

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