You won’t believe what happened despite rising inflation!

As the Thanksgiving holiday approaches, the sight of whole turkeys in grocery stores signals the festive spirit. The anticipation of delightful feasts and the scent of pumpkin pies fill the air as families prepare to come together for a day of gratitude and celebration. However, amidst the holiday cheer, the financial world continues to buzz with updates and changes that shape the global markets. Let’s delve into today’s CNBC Daily Open report to get a comprehensive look at the key events shaping international markets.

What you need to know today:

1. Inflation in October ticked up: According to the U.S. Commerce Department, the personal consumption expenditures price index for October increased by 0.2% on a monthly basis and 2.3% on a 12-month basis. Core inflation, too, saw a rise of 0.3% on a monthly basis, with an annual reading of 2.8%, exceeding September’s numbers. These figures align closely with Dow Jones consensus estimates, reflecting a steady inflationary trend in the U.S. economy.
2. U.S. markets break rally: Following a seven-day winning streak, U.S. stock markets experienced a decline, with the S&P 500 leading the way. While bond prices rose, Treasury yields dipped. In contrast, Asia-Pacific stocks mostly saw an upward trend, with Australia’s S&P/ASX 200 reaching a new record high and South Korea’s Kospi index maintaining stability following a central bank rate cut.
3. South Korea unexpected rate cuts: The Bank of Korea took the financial community by surprise by cutting its benchmark interest rate by 25 basis points to 3%. This move came as a response to disappointing third-quarter economic growth figures, leading to a downward revision of the country’s 2024 GDP outlook from 2.4% to 2.2%.
4. Offshore yuan’s potential drop: Forecasts from multiple institutions indicate that China’s offshore yuan could decline to an average of 7.51 against the dollar by the end of 2025. This projected drop might result from tariff threats and decreasing interest rates in China, placing significant pressure on the yuan’s value.
5. Potential beneficiaries of tariffs: While tariffs often lead to increased costs and concerns across the business sector, certain technology companies specializing in supply chain optimization stand to benefit from President-elect Donald Trump’s planned tariffs. These companies could see a boost in demand as companies seek solutions to navigate higher import fees.

Amidst these shifts and fluctuations in the financial landscape, investors in the U.S. maintained a cautious stance ahead of the Thanksgiving holiday. Despite minor declines in the S&P 500 and the Dow Jones Industrial Average, the overall sentiment did not reflect widespread panic. Traders seemed to be taking a moment to reflect on a year marked by significant rallies in Big Tech stocks.

While inflation in the U.S. showed a slight increase, investors appeared unfazed, with expectations of a rate cut by the U.S. Federal Reserve gaining traction ahead of its December meeting. The market’s reaction to these developments suggests a sense of measured optimism and confidence in the economy’s resilience.

As we approach the holiday season, it’s essential to acknowledge the positive trends and opportunities within the financial markets. Let’s embrace this moment of reflection and gratitude, appreciating the stability and growth that define the current economic landscape. Wishing you a prosperous and joyous Thanksgiving.