Mountain Tech Analysis

• FED nowhere near pausing is market tightening
• Stock indexes bounced back after higher CPI
  • CPI m/m 0.4% vs 0.1% previous
  • CPI y/y 8.2% vs 8.3% previous
  • Core CPI m/m 0.6% vs 0.6% previous
  • US unemployment claims 228k vs 219k previous
• SP500 on the CPI news at NYSE Open release time from 3165 to 3500 in the first half an hour , then slowly retraced back to 3680 as the NY session closed
• WTI hovered around $85-89 through the volatile session
  • Crude oil inventories 9.9 mil vs -1.4 m previous
  • Distillate Inventories -4.1 m vs -3.4m previous
  • Gasoline Inventories 2m vs -4.7m previous
  • Last weeks Baker Hughes Oil Rig Count 602
  • OPEC Lowering production

British Pound has recovered to 1.13 against the greenback on the news that the UK budget might include lifting the corporate tax rate.Previously the Treasury and the new Prime Minister announced plans of an expansionary fiscal policy and tax rate cuts for higher income earners that drove the pound into a new low.

30 year GILT went down 29 basis points to 4.52% . The plan originally was to keep corporate tax rate at 19% now they are planning to lift it to 25% next year.

Truss plans to lower 45% tax rate for the highest income earners has been scrapped by the Chancellor Kwarteng as the tax cuts would creae a budget short fall. A recommendation by the Institute for Fiscal Studies has advised that the UK gov needs to raise rates by 62 billion pounds to fill the budget coffers.