Volatility Subsides As Inflation Dust Settles
Price action is slowing in financial markets after yesterday’s US inflation report definitively cleared the way for a September rate cut, yet stopped short of justifying an unusually-large half-percentage-point move. Both the headline and core consumer-price indices rose at the slowest pace in three years in July, but shelter costs failed to match the prior month’s swift deceleration, putting the onus on forthcoming labour market data to determine whether a faster pace of easing is justified. The dollar is holding near an eight-month low, Treasury yields are little changed, and stock market futures are setting up for an incrementally-stronger open....