(Sharecast News) – Industrial miners topped the FTSE 350 leaderboard again on Wednesday following the release of a better-than-expected reading for US consumer price inflation.
According to the U.S. Department of Labor, cost of living increases slowed to 3.0% in June – the least since early 2021.
More importantly, core consumer prices rose more slowly than anticipated, potentially marking a break lower in the trend in month-on-month terms.
The news saw the U.S. dollar index slip to a fresh 52-week low and pushed commodity prices higher.
Three-month LME copper futures meanwhile climbed 2.13% to $8,499.50 a metric tonne.
Worth noting, the CPI news also prompted some market commentary along the lines that it boosted the odds that the Federal Reserve’s next rate hike could be its next to last of the current tightening cycle.
Also to the benefit of miners, in remarks overnight Chinese President Xi Jinping reportedly urged a greater opening up of the Asian giant’s economy.
Interest rate sensitive home construction stocks and REITS also gained on the back of the news as traders adjusted their views on the likelihood of a second Fed hike before the end of 2023.
Top performing sectors so far today
Industrial Metals & Mining 6,520.76 +4.39%
Industrial Transportation 3,919.98 +3.69%
Household Goods & Home Construction 10,059.95 +3.25%
Real Estate Investment Trusts 2,077.73 +3.00%
Real Estate Investment & Services 2,119.65 +2.91%