Last night saw two major inflation releases with Germany’s April print coming high as expected whereas US inflation drifted slightly lower than expected, sending the USD temporarily down and giving non-industrial stocks on Wall Street a boost.
European stocks pulled back and the headline DOW dropped on poor industrial earnings while the Australian dollar like other major currencies at first rallied on the inflation print before returning to where it started the session, keeping well above the 67 cent level.
Meanwhile 10 year US Treasury yields pulled back on the inflation print, pushed down nearly 10 basis points to the 3.4% level as oil prices paused their rebound with Brent crude stalling below the $77USD per barrel.
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