Daily summary: Bullish surprise in stock markets despite higher CPI

• Wall Street is rebounding from deep declines early in the session. The major indexes are gaining despite a worrisome inflation reading from the US. The S&P500 gains 1.92%, the NASDAQ rises 1.6% and the Dow Jones adds 2.37%

• CPI inflation came in at 8.2% y/y versus expectations of 8.1% y/y and 8.3% previously. Core inflation also rose to 6.6% y/y, a reading that was above forecasts of 6.5% and 6.3% previously;

• Ahead of tomorrow's results, the listings of the largest US banks are gaining mightily. Shares of Wells Fargo, JP Morgan and Citigroup are rising. The largest asset management fund, BlackRock showed a successful quarterly report today, although the decline in assets under management confirms the dire sentiment in the financial markets. The fund's listings are already bouncing nearly 10% from the opening low of today's session;

• European trading floors had a mixed session, but the DAX stood out against benchmarks from the Old Continent, rising 1.5%. The index was helped by Reuters reports that the ECB's forward rate model assumes that interest rates will reach their terminal level at 2.25%. The markets received this news dovishly, which contributed to the rebound. The US dollar weakened at the end of the session and erased the gains from the early part of the day. The EURUSD pair is trading at $0.98;

• Precious metals are rebounding slightly, although they are still under the dash. Gold is holding near $1,675 per ounce. Silver is still trading below $19;

• Cryptocurrencies are erasing some of the declines after a surprise return of better sentiment drove valuations of risky assets. Bitcoin is trading around $19,100, after a rapid decline to the area of $18,000. The price of Ethereum remains in the vicinity of $1275;

• Energy commodity prices rose. Crude oil climbed above $94 per barrel again. The United States announced that it is still not close to signing a nuclear pact with Iran, putting off the likelihood of releasing Iran's oil reserves and supporting 'black gold' prices. The White House is still considering sanctions on Saudi Arabia over its decision to cut production by OPEC+;

• Tension is rising in Asia due to escalation from the North Korean regime. According to Japanese sources, North Korean ballistic missile tests indicate that Japan is within potential missile range of Kim Jong-Un's military. South Korean fighter jets were picked up after 10 North Korean aircraft flew just over the two countries' border zone.

We saw an interesting interplay today on the USD/JPY pair, which gained dynamically after the higher US inflation reading. What catches the eye is the surge in volume after crossing the highest levels since the Asian crisis, whose accompanying movement lifted the pair by more than 0.8% in just 1 minute. Let's remember that Japan's Ministry of Finance has communicated that it does not feel the need to inform the market when it intervenes in the yen market. Source: xStation5