As traders await the pivotal US consumer price index (CPI) report, global markets are on edge, with Asian stocks poised for a mixed opening. The CPI data is expected to provide crucial insights into the Federal Reserve's future rate decisions, which have been a focal point for investors. "All eyes are now on Wednesday’s CPI report, which may be the most important inflation reading in recent memory," said Chris Brigati at SWBC. A strong inflation figure could reinforce the notion of no rate cuts in 2025, or even a potential hike, while weaker data might ease market concerns over the Fed's trajectory.
In the commodities sector, oil prices have retreated from a five-month high following a tentative ceasefire agreement between Hamas and Israel, which has alleviated some supply risk concerns. This geopolitical development has contributed to the cooling of a recent rally in oil prices, which had been driven by fears over disruptions in Russian and Iranian supplies.
As of 18:11 on January 14, the price of Brent crude oil (CO1) stands at $80.21, slightly up from its last close of $79.92. The market remains sensitive to geopolitical developments and upcoming economic data, which could further influence price movements.