While grocery inflation slowed, prices for key items like cereals and nonalcoholic beverages picked up.
The consumer price index (CPI) accelerated to 2.9 percent last month from a year ago, up from 2.7 percent in November, the Labor Department said in a statement.
The rupee closed at 86.3625 against the US dollar, up 0.3% on Wednesday, its best single-day percentage rise since June 3, 2024.
This ascent was driven by recovering investor sentiment from the pandemic, rising corporate profits, cooling inflation, and increased speculation about interest rate cuts.
All major averages in the U.S. market ended on a positive note on May 15. The Dow Jones was up 0.8 percent, while the tech-heavy NASDAQ Composite and the S&P 500 indices rose over 1 percent each.
Spot gold was 0.5% higher at $2,369.49 per ounce by 1449 GMT. U.S. gold futures for June delivery rose 0.6% to $2,374.60 per ounce
The CPI increased 3.4% after climbing 3.5% in March
The MSCI All-World share index traded at a record high, up 0.15% on the day, which brought gains for 2024 so far to 8.3%.
Though rising bond yields could have some impact on foreign flows, analysts remain bullish on Indian markets' construct, saying that it is mainly being driven by domestic liquidity
U.S. stock index futures were slightly weaker.
Market participants expect that the mild increase in US CPI numbers to not impact the Fed's decision of a rate cut in June
Traders held on to bets that the Federal Reserve will cut rates in the coming months following inflation data
While price increases have fallen from their peak in 2022, households are still feeling the pinch from costs of living, adding pressure on US President Joe Biden as he seeks reelection this year.
European stocks dipped 0.2% to hover just shy of recent highs, as lacklustre corporate earnings also weighed on sentiment. German stocks bucked the trend to add 0.2%.
Data last week showed sticky US inflation, prompting investors to push back bets the Fed would start cutting rates in March. Markets are now pricing in the first cut in June, compared with March at the start of the year.
Walmart kicked off the earnings season for U.S. retailers on an upbeat note, helping limit losses on the Dow, but Europe's broad STOXX 600 benchmark and Japan's Nikkei remain about 1% below respective record peaks in 2022 and 1989.
The producer price index for final demand dipped 0.1% last month, after a decline in the cost of goods, while prices for services were unchanged, increasing the chances of lower inflation in the months ahead.
Spot gold was up 0.3% at $2,029.19 per ounce, as of 10:54 a.m. ET (1554 GMT), easing from 0.8% before the data. US gold futures also rose 0.3% to $2,034.10.
In this episode of Market Minutes, Lovisha Darad discusses about key factors that will guide market direction on January 11. With positive global set-up, will investors support market breadth as Infosys and TCS prepare to announce Q3 results? Globally, investors will eye US retail inflation figures for December, wherein economists do not expect any major change as against previous month’s reading. Also, catch Shaji Nair of Sharekhan on Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, key data points, and developing trends.
The rupee ended at 83.1150 against the U.S. dollar, barely changed compared to its close at 83.1375 in the previous session.
Traders are now pricing in an 83% chance of a Fed rate cut by March, according to the CME FedWatch tool. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
The next cue for markets is the Federal Reserve's December policy outcome, which is expected later in the day. While the US central bank is expected to hold rates, its commentary will be closely tracked for clues to the rate-cut path
An upbeat U.S. jobs report last week dampened expectations the Federal Reserve could cut interest rates as soon as March.
The greenback is poised for its biggest weekly drop since July, down 1.6% over the past five days, and second-biggest decline this year.
By Ashitha Shivaprasad and Anushree Ashish Mukherjee Gold prices gained on Tuesday as the dollar and Treasury yields retreated after softer-tha..