Market Recap | 13-June-2024

U.S. consumer prices increased less than expected on an annualized basis in May. This suggests a possible easing in price pressures, which could influence Federal Reserve policymakers’ future decisions on interest rates.

As anticipated, the Fed kept interest rates steady on Wednesday. However, Chair Jerome Powell surprised markets by announcing that the central bank now plans to cut rates only once this year. This is down from the previous estimate of three cuts in March.

Oil prices in Asian markets fell on Thursday after official data showed an unexpected increase in U.S. crude inventories. Meanwhile, the IEA lowered its oil demand growth forecast for 2024 and warned of a potential supply glut.

PPI data, due later on Thursday, is expected to offer further insights into inflation trends.