🎯Strong showing in stocks❤️

Equity rose on Monday, giving it the fourth straight time of gains as investors look ahead to today’s inflation print. 

The expectation is for August’s CPI to show a decline of 0.1% based on a monthly basis. If inflation shows persistent signs of slowing, it will bode well for equities, as investors will bet on the Fed to dial back the aggressive rate hike stance. 

Nonetheless, Pika World remains cautious given that a series of Fed speakers had been firm in their fight against inflation and will want to see more continuous signs of inflation moderating before changing course in monetary policy. 

✏️Geopolitics playing out: Ukraine gains a positive note🔫

There are also signs of relief that as Russia suffered setbacks in the war, it could push Putin to the bargaining table. But, technically, investors are generally surprised that Ukraine is performing pretty resilient in the war and that some see a turning point. 

The war does have implications for the stock market. Investors looking at the most optimistic outcome will be the end of the war and the restoration of mass commodities supply that will help tame the global food inflation narrative. 

📱iPhone demand appears strong🔦

From the words of AT&T CEO, he is seeing firm demand for the latest iPhone 14 unveiled last week. However, he considers a more accurate focus in the coming holiday season when consumers begin to make their choice of gift purchase. 

It helps to give Apple’s shares a boost. 

⛳️What’s on the menu today?🎁

At 8.30 pm, we will receive the monthly Core CPI for August. We expect a 0.3% growth, similar to the previous period. 

The Core CPI, based on month to month basis, is expected to decline by 0.1%. Likewise, we should expect the CPI on a YoY basis to moderate to 8.1% from 8.5%. 

The data is critical as it will shape the narrative for the week running up to the FOMC meetings. Even if the readings appear softer, it is almost certain that the Fed will raise the interest rate by 0.75%.