The Dow Jones dropped 0.6% upon opening after US inflation figures came in higher than expected in January, rising 0.5% month on month, leading to concerns interest rates could rise faster than expected.
The US Bureau of Labor Statistics announced the Consumer Price Index increased 0.5% in January on a seasonally-adjusted basis, while over the last 12 months, the index was unchanged reporting a rise of 2.1%. This was surprise compared to consensus estimates that expected a rise of 1.9%. Following the data release, the Dow Jones fell 0.6% and the S&P 500 initially dropped but by around 3.11pm GMT had rebounded. The yield on 10-year Treasuries rose 4 basis points after the inflation numbers were released to near a four-year high of 2.88%, while the dollar index jumped as much as 0....
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