Top news influencing ASX 200 this week ending 12 August 2022

By the end of week on 12 August 2022, we see that the benchmark index ASX 200 moved up marginally by 0.24%. On Friday, 12 August 2022, the index slipped 0.54% and settled at 7,032.50. Investors had a mixed reaction this week, driven by some of the major updates and development this week. In this article, we will look at some of the big updates which influenced the market in the last five days.

China released its CPI data:

On Wednesday 10 August 2022, following the release of China’s inflation data, ASX 200 ended lower. China’s consumer inflation accelerated in July 2022 to its highest level in 2 years, driven by increasing pork costs. However, the weak consumer demand kept the overall price under control.

According to the National Bureau of Statistics data, the consumer price index surged 2.7% in July 2022 from the previous year as pork prices increased by 20.2%.

China’s consumer prices increased at the highest rate in more than 8 years. Food prices increased 20.6%.

Interesting Read: How would China’s CPI and US CPI data impact the Australian market?

US released its CPI data:

Following the release of China’s CPI data, US released its CPI data on 11 August 2022. Post this release of US Inflation data, the ASX 200 moved up on ASX. Most indices moved up on that day.

In July 2022, the US consumer price index (CPI) increased 8.5% compared to the previous corresponding period. It cooled from 9.5% in June 2022 to 8.5% in July 2022.

The inflation data reflects the lower energy prices which could release some pressure off the Fed to aggressively increase the interest rate.

Dollar was under pressure following US Inflation data release

The US dollar was under pressure on Thursday 11 August 2022 following a 1% loss in the previous day when the data showed that the US inflation data was not as hot as projected in July 2022.

Investors slashed their bets on the likelihood that the Federal Reserve would increase rates by 75 basis points for the third consecutive time to tame a decade-high inflation.

The US Dollar recorded its biggest drop in the five months following the report that traders readjusted their projections to factor in the scope that inflation may have peaked.

However, on Friday 12 August 2022, the US Dollar edged higher, rebounding to a degree after a two-day sell-off.

Coal stocks gained market attention:

This week coal stocks gained market attention after the EU imposed a ban on Russian coal. The EU prohibited coal imports from 10 August 2022 as a part of a sanction against Russia for its brutal invasion of Ukraine.

Related article: An opportunity for Australian miners - EU ban on Russian coal now in force

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