Spot palladium rose more than 4% on the day and is currently trading at $1,025.28 per ounce.

Peel, chief economist of the Bank of England: I think the risk remains that inflation momentum is too strong, preventing us from achieving the 2% target.

[The possibility of the Federal Reserve raising interest rates in December is ruled out, and the focus turns to interest rate cuts] Ian Lyngen, an analyst at Bank of Montreal: This CPI report is good news for the Federal Reserve. It proves that monetary policy is still effective and the impact on the real economy is lagging. of. This rules out the possibility of a December rate hike and reinforces our view that the July rate hike is the last of this cycle, and the cycle focus will turn to how long into the future the Fed will try to delay rate cuts.

Larry Weiss, head of equity trading at Instinet: CPI data suggests rates may not be “higher for longer” as some fear.

Spot gold hit $1,960 per ounce, up 0.72% on the day.

Jay Bryson, chief economist at Wells Fargo: It will take several more months of core CPI monthly rates of 0.2% before the Fed declares its mission accomplished. I think the Fed will hold off on easing policy for now.

Bank of England chief economist Peel: The Bank of England must focus on inflation rather than solving other problems in the British economy.

Bank of England chief economist Peel: Food and energy are important factors in the decline in inflation.

Bank of England chief economist Peel: Significant progress has been made on inflation, but an inflation rate of 5% is still too high.

U.S. CPI data were all lower than expected. Shares of major Wall Street lenders rose before the market opened. JPMorgan Chase (JPM.N) rose 1.4%, Citigroup (CN) rose 2%, Goldman Sachs (GS.N) rose 1.6%, and Morgan Stanley rose 1.4%. Bank of America (MS.N) rose 2%, Wells Fargo (WFC.N) rose 1.9% and Bank of America (BAC.N) rose 2.4%.

The UK 10-year government bond yield fell 10 basis points to 4.21%, the lowest level since July 24.

Institutional comments on U.S. CPI data: Better-than-expected CPI will trigger a market rebound, but we suspect that as more data is released, the steepening bull market may not continue beyond today. The market is likely to rule out additional rate hikes this cycle, but we believe pricing in rate cuts in 2024 will not increase, suggesting there are limits to the extent of the current bull market steepening.

EUR/USD hit 1.08, a new high since September 4, up 0.95% on the day.

Wells Fargo: Raised its price target on Microsoft (MSFT.O) to $425 from $410.

Agency comments on U.S. CPI data: The housing category still brought upward pressure last month, but the rate of increase has slowed. While economists expect growth in this category to continue to slow, there is a risk it will start to heat up again next year. Rent is lagged in the CPI by about a year, meaning the recent acceleration in rent increases will not be reflected in the data until much later.

Agency comments on U.S. CPI data: Prices of used cars and trucks appear to be continuing to fall, falling 0.8% this month.