Appetite is high in global markets

Following the US retail sales data, risk appetite is high in the markets. The market is closely following the US data as well as the statements of Fed officials. According to Raphael Bostic, one of the last Fed officials to speak, it will take some time to reach the interest rate cut threshold. High CPI concerns have diminished following the decline in US retail sales in January. Following the data, Wall Street Stock Exchanges rose while the dollar fell, while bonds showed slight movements. The S&P 500 closed Thursday with a 0.58 percent increase at 5,030 points. S&P 500 futures are flat. The Bloomberg Dollar Index fell for the second day of trading on Thursday with a 0.4 percent increase and rose by 0.1 percent in the morning hours. Although the US 10-year bond yield closed Thursday with a two-basis-point decrease at 4.23 percent, the yield rose again to 4.25 percent this morning. Following the decline in US retail sales in January with a much higher than expected 0.8 percent, the possibility of a June interest rate cut has been fully priced in the swap market. Asia Pacific rose under Japan's leadership. Nikkei traded at 225. While the increase in travel during the holiday season in China signaled an increase in consumer spending, Hong Kong's Hang Seng also rose by nearly 2 percent. Brent crude, which rose 1.5 percent on Thursday due to increased risk appetite, is hovering near $83. “Getting to the rate cut threshold ‘may take time’ Atlanta Fed President Raphael Bostic said that they will not rush to cut rates given that the labor market and economy are still strong. Bostic said that getting to the rate cut threshold “may take some time” and that they are not yet clear that inflation is moving permanently toward the 2% target. Speaking in New York, Bostic said, “The data shows that victory is not in our hands. I am not yet comfortable that inflation has come down hard toward the 2% target.” Bostic noted that the January CPI data may have been a one-time aberration and said they will need more evidence of price stability. Bostic has a vote on the Federal Open Market Committee, which sets interest rates this year.