It is believed that strong price growth could cause a sales rush on Asian bourses – E24

It’s the calm before a potential storm ahead of US price growth later today, and an interest rate decision on Wednesday.

– if Core inflationCore inflationCore inflation without food and energy. If the stock price hits 4.2% or more, stock traders will likely rush to hit the sell button first, and ask questions later, says IG analyst Tony Sycamore. Reuters.

A Bloomberg poll of economists shows that core inflation is expected to reach 4.0 percent.

– If core inflation reaches 3.9 percent or less, it will be a green light for stock markets to continue their growth until the end of the year, Sycamore continues.

Asian stock exchanges follow Wall Street closely and are often affected by volatility.

This is the case for some of the leading indicators in the Asia-Pacific region on Tuesday morning at 06:00:

• The Hang Seng Index in Hong Kong rose 0.85 percent
• The Kospi index in Seoul rose 0.51 percent
• The Shanghai Composite Index rose 0.1%.
• Sydney’s ASX 200 index rose 0.52%.
• The FTSE Straits Times Index in Singapore rose 0.42%.
• The Nikkei index in the Tokyo Stock Exchange rose 0.2 percent

Oil prices have risen somewhat since Oslo Børs closed on Monday at $76.48 a barrel. It also corresponds to an increase of 0.58 percent since midnight.

Expect interest rates in the US to remain unchanged

On Tuesday and Wednesday, the US central bank, the Federal Reserve, holds an interest rate meeting.

The Federal Reserve is expected to keep interest rates unchanged in the range of 5.25-5.5 percent.

Many investors expect the Fed to cut interest rates as early as March next year. But the Fed has tried to temper market expectations of a rate cut early next year, he wrote CNBC.

Federal Reserve Chairman Jerome Powell warned earlier this month that it was too early to predict when the central bank would ease monetary policy, suggesting the central bank was prepared to tighten if necessary.