Equities mostly fell Wednesday ahead of a crunch US inflation report, with investors increasingly nervous that a recent spike in oil will put fresh upward pressure on consumer prices and force the Federal Reserve to lift interest rates again. The central bank has insisted that its decision-making on monetary policy will be data-driven as it assesses a range of figures, which have for much of 2023 suggested that more than a year of tightening is having the desired effect.
That had fanned optimism that July’s hike was the last and officials would allow its measures to work through the economy and bring inflation to heel. But a recent run of strong data, particularly on the jobs market and the services sector, has revived talk that more were on the way, with a surge in oil prices to 10-month highs adding to those concerns.
The pick-up has been fuelled by Saudi Arabia and Russia’s decision to slash output until the end of the year, while floods in Libya have hammered its ability to pump.—AFP
