Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Markets will receive a long-awaited economic update later today, in the form the latest CPI report, courtesy of the US Bureau of Labor Statistics. While not the most thrilling of updates, traders have had almost nothing else to chew on over the past three weeks and are starved for information. The US government shutdown is now the second-longest in history at 24 days and counting, with no resolution in sight. The longest shutdown totalled 35 days, so a new record is looking increasingly likely. Headline and core inflation are forecast to come in at 3.1% – a significant step above the Fed’s 2% target. The Federal Reserve is also in the dark regarding inflation and labour data, making next week’s rate decision more complicated. For now however, interest rate traders are locked on to another 25-bps cut on the 29th of October.
Precious metals have remained relatively stable since the brutal selloff on Tuesday. Gold is hovering just above $4,100 per ounce at the time of writing, while silver lingers below $49. The softening of trade tensions between the US and China is set to continue, with President Trump and Xi Jinping agreeing to meet in South Korea next week. The two leaders have not met face-to-face since 2019 and while nothing of substance has emerged as of yet, the mere confirmation of a meeting has prompted a degree of cautious optimism. Any ensuing resolution would further dent the safe-haven narrative, potentially affecting precious metal flows in the coming weeks.
US futures are holding steady ahead of today’s CPI report, with all three major indices hovering near all-time highs before the final session of the week. Intel Corporation (INTC) smashed expectations with its third-quarter earnings report yesterday, leading to an 8% jump in after-market trading. The chipmaker saw a change in fortune this summer with investments from SoftBank, Nvidia and even the US government, which has secured a 10% stake in the company. The dark cloud looming over Intel remains the question of its foundry, which makes custom chips for customers. The business has floundered from inception and has seen large numbers of layoffs in recent months. Whether profitable or not, judging by the ongoing injections of capital into the company, the business appears to be of strong strategic importance to American actors.
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