Global Financial Update: US CPI Surges, EU Probes Chinese EV Makers, and BP CEO Resigns”

When is the 13 September 2023?

The United States Consumer Price Index (CPI) for August has surpassed expectations, rising to 3.7% year-on-year, outpacing the projected rate of 3.6%. This indicates a higher-than-anticipated increase in prices, reflecting the ongoing inflationary pressures in the US economy.

In other global news, China’s electric vehicle (EV) makers are under scrutiny as the European Union (EU) initiates an antisubsidy probe. This investigation marks a significant development in the global clean-technology industry, highlighting the intensifying competition for leadership in this sector. The EU’s probe raises concerns about potential unfair trade practices and subsidies that may be distorting the market.

Meanwhile, the USD/CAD is trading higher above 1.3550 during the European session on Wednesday, aiming to break a three-day losing streak. The recent decline in the pair has prompted a rebound in the US Dollar. Investors are now focusing on the upcoming release of the US CPI, which will provide crucial insights into inflation trends.

In the United Kingdom, Industrial Production registered at -0.7% in July, falling below expectations of -0.6%. This decline reflects the ongoing challenges faced by the UK manufacturing sector amidst supply chain disruptions and labor shortages.

In corporate news, BP CEO Bernard Looney has resigned amidst an ongoing review of his personal relationships with colleagues. This comes as a significant blow to BP, as Looney had been leading the company’s efforts to transition towards cleaner energy sources.

In the commodities market, Western Texas Intermediate (WTI), the benchmark for US crude oil, surged over 2% to reach a 10-month high. This surge can be attributed to supply cuts and robust global demand projections for 2024.

The World Trade Organization (WTO) has issued a warning regarding the increasing fragmentation of global trade into allied blocs. This shift towards regional trade agreements and bilateral deals has led to the fragmentation of global trade, posing risks of higher costs and potential conflicts.

In currency markets, the GBP/USD pair faced selling pressure on Tuesday, causing it to drop below the key psychological level of 1.2500. Meanwhile, economists at ING predict that EUR/USD could find some support in the short term near the 1.0700 area ahead of the European Central Bank (ECB) meeting on Thursday.

This article was generated by AI so there may be some errors.