U.S. producer prices rise solidly; healthcare costs increasing By Reuters


© Reuters. FILE PHOTO: People shop at an H&M store during the grand opening of the The Hudson Yards development in New York

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. producer prices increased by the most in six months in October, lifted by gains in the costs of goods and services, further bolstering the Federal Reserve’s stance that it will probably not cut interest rates again in the near term.

The report from the Labor Department on Thursday showed healthcare costs accelerated last month, with the cost of outpatient care at hospitals posting its largest rise since 2009. The jump in healthcare prices mirrored gains reported in October’s consumer price index report on Wednesday.

Rising healthcare costs, if sustained, suggest inflation could trend higher, though it is not likely to become troublesome because of a moderation in the pace of rent increases.

The U.S. central bank last month cut rates for the third time this year and signaled a pause in the easing cycle that started in July when it reduced borrowing costs for the first time since 2008. Fed Chair Jerome Powell reiterated that stance in testimony before lawmakers on Wednesday.

The producer price index for final demand rose 0.4% last month, the biggest increase since April, after falling 0.3% in September. In the 12 months through October, the PPI climbed 1.1%, the smallest increase since October 2016, after advancing 1.4% in the 12 months through September. Annual producer inflation retreated as last year’s hefty gain dropped out of the calculation.

Economists polled by Reuters had forecast the PPI would rise 0.3% in October and climb 0.9% on a year-on-year basis.

Excluding the volatile food, energy and trade services components, producer prices edged up 0.1% after being unchanged in September. The so-called core PPI increased 1.5% in the 12 months through October after gaining 1.7% in the 12 months through September. Annual core PPI also slowed last month as last October’s increase dropped out of the calculation.

The data came on the heels of a report on Wednesday showing a strong rise in consumer prices in October amid large gains in healthcare costs and prices of used cars and trucks.

The Fed, which has a 2% annual inflation target, tracks the core personal consumption expenditures (PCE) price index for monetary policy. The core PCE price index rose 1.7% on a year-on-year basis in September and has undershot its target this year. October PCE price data will be published later this month.

U.S. stock index futures were trading slightly lower while the dollar () was largely unchanged against a basket of currencies. Prices of U.S. Treasuries rose.

LABOR MARKET STRENGTH

Stabilizing inflation follows in the wake of fairly upbeat data on the economy, including better-than-expected job growth in October and an acceleration in services sector activity, which have eased financial market fears of a recession. There have also been hopeful signs in the 16-year trade war between the United States and China, which has pressured business investment and manufacturing.

Though another report from the Labor Department on Thursday showed the number of Americans filing claims for unemployment benefits rose to a five-month high last week, that likely does not signal a shift in labor market conditions as claims for several states were estimated because of Monday’s holiday.

Initial claims for state unemployment benefits increased 14,000 to a seasonally adjusted 225,000 for the week ended Nov. 9, the highest reading since June 22, the Labor Department said. Some of the states, including California, Pennsylvania and Virginia, did not have enough time to process the claims data because of Monday’s Veterans Day holiday, leading to them making estimates.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose only 1,750 to 217,000 last week.

Labor market strength, marked by the lowest unemployment rate in nearly 50 years, is supporting consumer spending and helping to offset some of the hit on the economy from the U.S.-China trade war.

In October, wholesale energy prices rebounded 2.8% after dropping 2.5% in September. They were boosted by a 7.3% surge in gasoline prices, which followed a 7.2% decline in September.

Gasoline accounted for nearly half of the 0.7% increase in goods prices last month. Goods prices fell 0.4% in September.

Wholesale food prices jumped 1.3% in October after rising 0.3% in September. Core goods prices were unchanged last month. They slipped 0.1% in September.

The cost of services increased 0.3% last month after decreasing 0.2% in September. Services were lifted by a 0.8% surge in trade services, which measure changes in margins received by wholesalers and retailers.

The cost of healthcare services accelerated 0.8% in October after gaining 0.3% in the prior month. The cost of hospital outpatient care increased 0.7% last month, the most since July 2009. Inpatient care prices rose 0.6%, the most since October 2018. Those healthcare costs feed into the core PCE price index.

But portfolio management fees, which also go into the calculation of the core PCE price, index fell 0.9% in October after being unchanged in September.



Gold Prices Rebound as Havens Sought Ahead of Powell Testimony By Investing.com


© Reuters.

Investing.com — Gold and silver prices rebounded on Wednesday as the negative implications of President Donald Trump’s speech on Tuesday filtered through to markets – albeit with something of a delay.

In a keynote speech, Trump had again played down talk of a mutual roll-back of tariffs with China and threatened to raise import tariffs much higher. On the evidence of the year so far, such a step could quickly feed through into a further slowdown in the global economy, requiring yet more policy support from the world’s central banks.

Prices were held in relatively narrow ranges as the market awaited Congressional Testimony later in the day from Federal Reserve Chairman Jerome Powell. Markets have all but ruled out any action from the Fed at its December policy meeting, but many still expect it to cut U.S. interest rates again next year against the backdrop of stuttering economic growth.

Consumer inflation data released earlier did not, at first glance, strengthen the case for Fed action significantly. Although the rate of inflation ticked down to 2.3% from 2.4%, the headline number ticked up to 1.8% from 1.7%.

By 9:45 AM ET (1445 GMT), for delivery on the Comex exchange had rebounded to $1,464.85 a troy ounce, up 0.8% on the day, and up nearly 1% from Tuesday’s lows below $1,450.

was was up 0.4% at $1,463.45 an ounce.

Although the rally in gold and other haven assets has cooled in recent weeks, some point out that the longer-term strategic support to prices from global monetary policy hasn’t gone away.

“Don’t forget the fact that 70% of developed markets worldwide are in negative rate territory, and gold is global,” said World Gold Council managing director Joe Cavatoni in an interview with TD Ameritrade.

Analysts at ABN AMRO (AS:) said in a research note that they were keeping their year-end forecast for 2020 at $1,600/oz.

The U.K., a source of much portfolio buying of gold this year, inched closer to its next interest rate cut on Wednesday as the rate of fell to a three-year low of 1.5%, while annual produce price inflation fell to 0.8%, also a three-year low. The Bank of England had warned last week that it may have to cut interest rates in the new year if the prolonged uncertainty over Brexit – along with the global slowdown – continue to create spare capacity in the economy.

Elsewhere, rose 1.2% to $16.90 an ounce, while rebounded 0.4% to $873.90.

U.S. government bond yields fell by between 1 and three basis points, meanwhile.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Prices Down as Sino-U.S. Trade Hope Diminishes By Investing.com


© Reuters.

Investing.com – Oil prices were down on Wednesday in Asia as hopes for a trade deal between China and the U.S., the world’s biggest oil importers, dimmed.

U.S. dropped 0.4% to $56.59 by 1:21 AM ET (05:21 GMT). International were also down 0.4%.

Outlook for the energy demand worsened after U.S. President Donald Trump disappointed investors by not providing a data or a venue for the signing of a partial trade deal with China.

Instead, the president called China “cheaters” and that the U.S. will “substantially” increase tariffs on China if no deal is reached.

Also weighing on oil prices today was a forecast by the International Energy Agency’s (IEA) for slower global oil demand growth post-2025.

Global oil demand growth is expected to grow by 1 million barrels per day on average to 2025 but is forecast to slow to an average of 100,000 bpd a year from then on, the IEA said in its annual World Energy Outlook for the period to 2040.

Traders now await the weekly oil inventories report. The American Petroleum Institute is scheduled to release its data for the latest week at 4:30 PM ET, while the weekly report from the U.S. Energy Information Administration is due at 11:00 AM ET on Thursday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Rising Medicare prices will shrink Social Security inflation adjustment next year


(The opinions expressed here are those of the author, a columnist for Reuters.)

FILE PHOTO: A doctor checks the blood pressure of a patient at the J.W.C.H. safety-net clinic in the center of skid row in downtown Los Angeles July 30, 2007. REUTERS/Lucy Nicholson/File Photo

By Mark Miller

CHICAGO (Reuters) – The cost of Medicare is going up next year – way up.

Federal officials announced late last week that the standard monthly premium for Medicare Part B (outpatient services) will jump 6.7% to $144.60. The annual deductible will rise by a similar amount.

The increases come on the heels of last month’s news that the annual cost-of-living adjustment (COLA) for Social Security will be just 1.6% for 2020. But the actual COLA will be much smaller for most beneficiaries, since Part B premiums are deducted from Social Security benefits. For example, if your Social Security benefit is $1,500, your COLA will be just under 1% – an increase of $14.90 rather than $24.

The Centers for Medicare & Medicaid (CMS) said the Part B hikes are mainly due to higher spending on “physician-administered drugs.” That is a reference to situations where physicians buy and administer drugs to patients, and earn a profit on what they bill Medicare’s Part B program. Physician-administered drug spending rose at a rapid 9.6% annual clip between 2009 and 2017, according to the Medicare Payment Advisory Commission bit.ly/36SoNO9, an independent federal body that studies Medicare and reports to Congress.

CMS has proposed a reform plan bit.ly/2O2hH12 that would reduce the cost of these drugs by tying their prices to an international index.

The Medicare-and-COLA math underscores the broad challenge retirees face in protecting themselves against inflation. Social Security is the only retirement benefit that provides any type of built-in inflation protection – one of the key reasons that the program is so valuable.

Still, rising healthcare costs pose a broader threat for retirees. Medicare’s trustees are forecasting annual Part B premium increases averaging 5.9% through 2028 – well ahead of general inflation. 

Advocates for Social Security expansion hope to address the widening gap between healthcare and general inflation by adopting a COLA formula called the CPI-E (for elderly). This is an experimental index maintained by the U.S. Bureau of Labor Statistics that more accurately reflects the inflationary forces impacting seniors, such as healthcare. It has risen slightly more quickly than the CPI-W over the past decade – so it would help, but only a bit.

THE 2020 MATH

The 2020 Part B premium hikes will impact all but the lowest-benefit Social Security enrollees – those receiving $570 per month or less this year, according to the Senior Citizens League (SCL). This group will be protected by the so-called hold harmless provision of federal law, which protects Social Security enrollees from any decline in benefits. The rule prohibits the dollar increase in the Part B premium from exceeding the dollar increase in your Social Security benefit.

All other Social Security beneficiaries will bear the full weight of the Part B premium hike, and the higher deductible applies to everyone. Other Medicare enrollees who will pay full freight on the changes include anyone enrolled in Medicare who has not yet claimed Social Security, federal or state government workers who do not participate in Social Security but do use Medicare, and anyone enrolling in Medicare for the first time next year.

Affluent seniors who pay high-income Medicare premium surcharges also will see their premiums rise. 

Since 2007, high-income enrollees have been paying surcharges on their premiums for Part B (outpatient services) and Part D (prescription drugs). Relatively few people on Medicare pay the so-called Income-Related Monthly Adjustment Amount (IRMAA). Roughly 7% of enrollees pay IRMAAs, according to Medicare.

IRMAA brackets are defined by a modified adjusted gross income (MAGI) formula that includes the total adjusted gross income on your tax return plus tax-exempt interest income. The determination is made using the most recent tax return made available by the IRS to the Social Security Administration. For example, the IRMAA you pay in 2019 would be based on AGI reported on your 2017 tax return. (You can appeal for a reduction if your income declined due to any one of a number of defined “life-changing” circumstances – and one of those is stopping work. File your appeal using Form SSA-44 from the Social Security Administration)

This year, IRMAA kicks in for single filers with MAGI above $85,000, and double that figure ($170,000) for joint filers. In that first bracket, for example, the Part B premium next year will be $202.40 next year. From there, the surcharges move up through a series of brackets; in the highest bracket, the Part B premium next year will be $491.60 – but only if you have $500,000 or more of MAGI. (If you are in that rarified air, you probably will not have much trouble shouldering your IRMAAs.)

Next year, IRMAA brackets will be indexed for inflation for the first time –  and those figures also were announced by Medicare last week. They begin for single filers with MAGI of $87,000 or above – joint filers simply double that number.

The costs of Medicare Part A also will be higher next year. Medicare enrollees do not pay premiums for Part A (hospitalization), but the deductible there will rise 3.2%, to $1,408 for the first 60 days of care. (Click here go.cms.gov/33KliaN for details on all the new Medicare premiums and deductibles.)

THE BROADER INFLATION QUESTION

An annual study by the Senior Citizens League has consistently found that the CPI-W fails to do an adequate job of keeping seniors even with inflation. The league’s report on the buying power of seniors looks at a market basket of goods, including prescription drugs, housing, health insurance, food and various taxes. The most recent report found that benefits have lost 33% of their buying power since 2000.

“Older Americans are not living on a fixed income,” said Mary Johnson, the Social Security and Medicare policy analyst for SCL. “They are attempting to live on a shrinking one – their standard of living is declining as their Social Security benefits purchase less.”

Reporting and writing by Mark Miller in Chicago; Editing by Matthew Lewis



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Gold Prices Test Lows Again as Market Awaits Trump Speech By Investing.com


© Reuters.

Investing.com — Gold prices edged lower on Tuesday ahead of a keynote speech by President Donald Trump at 12 PM ET (1700 GMT) that is widely expected to set the tone for risk appetite this week.

Trump is due to address the Economic Club of New York in a speech that should enlarge on his thoughts about the trade dispute with China and – more immediately – whether his administration will decide whether or not to impose import tariffs on European autos. The official deadline for that latter decision is Wednesday.

European Commission President Jean-Claude Juncker and Commerce Secretary Wilbur Ross both raised hopes that tariffs would be avoided with comments last week. As such, the reaction function of haven assets may be skewed to the upside, given that consensus is for an outcome that would be bullish for risk assets.

By 10:55 AM ET (1555 GMT), for delivery on the Comex exchange were down 0.4% at $1,451.35 a troy ounce, having earlier again tried and failed to break out below the $1,450 level.

was down 0.3% at $1,450.99 an ounce.

There was little support from the bond market. Short-dated Treasuries, the most liquid alternative haven, have all but priced any further interest rate cuts from the Federal Reserve in December out of the equation. U.S. yields were flat at 1.67%. A rise of nearly 30 basis points in two-year yields since early October has greatly enhanced bonds vis-à-vis non-yielding gold.

Silver also extended its recent losses, the contract falling 0.8% to $16.67 an ounce, while fell 1.2% to $869.80.

“The mood toward precious metals has darkened significantly in the last two weeks,” said Commerzbank (DE:) strategist Christoph Geyer in a research note. “Important support levels and trends have been broken. It’s no longer a question of when new highs will be made, but whether the next support level can be held.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil prices gain as market awaits signals on U.S.-China trade talks By Reuters


© Reuters. A pump jack on a lease owned by Parsley Energy operates in the Permian Basin near Midland

By Aaron Sheldrick

TOKYO (Reuters) – Oil prices rose on Tuesday, reversing early losses on hopes that U.S. President Donald Trump may signal progress on trade talks with China in a speech later in the day.

futures were up 31 cents, or 0.5%, at $62.49 a barrel by 0644 GMT, after dipping to as low as $61.90 earlier in the day.

U.S. West Texas Intermediate (WTI) crude was up 23 cents, or 0.4%, at $57.09 a barrel, having fallen to $56.55.

Worries about the impact on oil demand from the fallout of the 16-month U.S.-China trade war, which has weighed on global economic growth, sent prices lower on Monday.

Trump said on Saturday that talks with China were moving along “very nicely” but the United States would only make a deal if it was the right one for Washington. He also there had been incorrect reporting about U.S. willingness to lift tariffs.

Trump speaks to the Economic Club of New York later on Tuesday, and markets will be keen for any update on the talks.

“Positive commentary about a possible U.S. and China interim trade deal certainly helps, but the fundamentals are supportive,” said Virendra Chauhan, Oil Analyst at Energy Aspects in Singapore, pointing to an improved demand outlook.

“Six million barrels per day of refining capacity is due to return from turnarounds across November and December,” he said.

On the supply side, Goldman Sachs (NYSE:) also cut its 2020 forecast for growth in U.S. oil production, which has surged in recent years.

The investment bank cut its growth forecast for next year by 100,000 barrels per day (bpd) to 600,000 bpd over 2019.

“We expect U.S. oil growth to decelerate into 2020 as many companies look to balance growth with capex,” Goldman Sachs said.

Elsewhere, U.S. data showed that crude inventories at Cushing, the delivery point for WTI, fell about 1.2 million barrels in the week to Nov. 8, traders said, citing market intelligence firm Genscape.

Cushing inventories had grown for five weeks in a row through Nov. 1, according to government data.

Demand growth may pick up in 2020 after a year of dashed expectations amid the U.S.-China trade war, Fitch Solutions Macro Research analysts said in a new report.

“Our data show that 2019 will mark the nadir of oil demand growth over the next five years,” Fitch Solutions said.

“We forecast demand to (grow) by around 0.5% this year, rising to 0.8% in 2020,” the report said, although it added that “trade and political risks remain extremely elevated.”



Gold Prices Fall Briefly Below $1,450 Despite Risk-Off Move By Investing.com


© Reuters.

Investing.com — Gold prices fell to a fresh three-month low on Monday, failing to get meaningful support from a general risk-off move in other markets on a day when hopes of a trade truce between the U.S. and China faded.

By 11:15 AM ET (1615 GMT), for delivery on the Comex exchange were down 1.0% at $1,454.65. a troy ounce, having fallen earlier through the $1,450 level for the first time in more than three months.

was down 0.3% at $1,453.66 an ounce.

The move was all the more striking for taking place when the U.S. bond market was shut for Veterans’ Day, restricting the choice of those who might have sought haven assets as stocks retreated from last week’s highs.

While there was no clear catalyst for the fall, most of which happened during U.S. hours, some U.K.-driven haven buying – a key prop of this year’s rally among portolio investors – may have unwound after the U.K. Brexit Party said it wouldn’t fight sitting Conservative lawmakers in the upcoming election on Dec. 12. That improves the chances of a Conservative majority in parliament and thus the completion of the U.K.’s withdrawal from the EU in the new year.

and were also battered, as the reversal that started last week shook out some of the weaker speculative long positions that have accumulated in recent weeks.

According to Commodity Futures Trading Commission data published on Friday, speculative long interest in hit their highest level in six weeks last week, while long silver positions also stayed at historically high levels despite a modest decline.

But the trend of recent months could be about to turn, according to cross-asset analysts at JPMorgan (NYSE:) led by John Normand.

“In our view, this fall marks the beginning of a bottoming out process in the global economy, judging from leading-edge indicators like inventory measures, manufacturing new orders indices and manufacturing output PMIs,” Normand’s team wrote in a weekly note to clients.

As such, it may be time to rotate out of defensive commodities such as gold and into cyclical ones such as oil and base metals, they said.

There wasn’t much sign of industrial commodities benefiting on Monday though. futures also fell 0.6% to $2.67 a pound, while aluminum futures fell 1.2% in London.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Prices Hit 3-Month Low as Trade Deal Hopes Spur Risk Assets By Investing.com


© Reuters.

Investing.com — Gold prices tumbled to a three-month low on Thursday as growing confidence in a trade rapprochement between the U.S. and China drove bond yields and risk assets higher across the board.

The Chinese Ministry of Commerce said that the two countries had agreed to roll back import tariffs on each other goods in phases as part of a preliminary truce. While that wasn’t expressly confirmed by U.S. sources on Thursday, it gels with recent reports that have cited unnamed Washington sources indicating that the Trump administration is prepared to back down on the use of its favorite trade weapon.

By 11:13 AM ET (1613 GMT), for delivery on the Comex exchange were down 1.5% at $1,470.15 a troy ounce, having earlier fallen as far as $1,468.95, their lowest since the start of August, when President Donald Trump threatened his most dramatic increase in import tariffs yet on Chinese goods.

was down 1.4% at $1,469.62.

tumbled 2.3% to $17.19 an ounce, while fell 1% to $922.45.

Precious metals were struggling to keep their attractiveness as yields on U.S. Treasury bonds also broke out of recent ranges to the upside. The yield rose 11 basis points to 1.93%, also a three-month high, while the rose to a six-week high of 1.67% as hopes of any further interest rate cuts from the Federal Reserve faded. According to Investing.com’s , the chance of a further rate cut at the Fed’s policy meeting in December has now fallen to less than 5% from over 25% a week ago.

Flow data suggest that even without the turnaround in sentiment, portfolio investors had become more leery of piling into gold-backed ETF products in October as prices reached new highs. According to data compiled by the World Gold Council, ETF holdings of gold-backed products rose by only 1.42 million ounces, or 44 tons, in October – the smallest monthly increase since May.

Over two-thirds of that increase came from European funds, in an apparent response to the European Central Bank’s latest package of easing measures. Less than one-third came from North American investors, by contrast.

The differing regional dynamics were in evidence again on Thursday as the Bank of England indicated it may have to cut interest rates again if the prolonged economic uncertainty emanating from Brexit and the U.S.-China trade dispute continues.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Euro zone September producer prices post minimal rise By Reuters



BRUSSELS (Reuters) – Euro zone industry prices edged up slightly in September after a larger fall in the previous month, official estimates showed on Tuesday, as the bloc continues to struggle with low inflation.

The European Union statistics agency Eurostat said prices at factory gates in the 19 countries sharing the euro rose by 0.1% in September on the month, in line with the Reuters consensus, and after a 0.5% fall in August.

On the year, prices dropped by 1.2%, also in line with market expectations.

Industrial producer prices signal inflationary pressure early in the pipeline because unless their change is absorbed by intermediaries and retailers, it is transmitted to the final consumer, impacting consumer inflation.

The European Central Bank wants to keep consumer inflation below, but close to 2 percent over the medium term, but has struggled to accelerate price growth for years despite programs of government bond buying on the market.

A preliminary estimate for October, released last week, shows the euro zone’s headline inflation is slowing to 0.7% on the year from 0.8% in September.

The ECB decided in September to re-launch bond purchases as inflation remained to slow.

The monthly increase of producer prices was mostly due to a 0.5% rise in energy costs at factories. Excluding energy, industry prices were flat.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Prices Fall Amid Renewed Sino-U.S. Trade Hopes  By Investing.com


© Reuters.

Investing.com – Prices of the safe-haven gold fell on Tuesday in Asia amid renewed Sino-U.S. trade hopes.

U.S. for December delivery were down 0.4% to $1,505.75 by 1:25 AM ET (05:25 GMT).

The U.S. and China indicated late last week that progress had been made on agreeing to a trade deal, with U.S. officials suggesting that a deal could be signed this month.

Bloomberg cited people familiar with the plans and said that Chinese leader Xi Jinping might travel to the U.S. to sign deal.

Investor sentiment received further boost after U.S. Commerce Secretary Wilbur Ross hinted at loosening a ban on U.S. companies selling to Chinese telecoms group Huawei.

Analysts at JPMorgan said in a weekly note that the price action suggested many were still prepared to bet on another cut in rates in 2020. However, they warned that “looking into next year, a Fed on hold would represent a significant downside risk to our bullish outlook on gold prices.”

JPMorgan expects gold to be trading around $1,800 by the fourth quarter of next year.

The fall in gold prices today came as major stock markets in Asia traded in the green. Japan’s Nikkei 225 jumped almost 2%, while Chinese stocks gained around 0.6%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.