Fed's Beige Book: High Oil Prices Impact All 12 US Districts, Businesses Anticipate Further Increases

[SMM Daily Review: US CPI Beats Across the Board, Rate Hike Expectations Rise, Silver Prices Tumble] SMM, October 15: US September CPI came in above expectations across the board, fueling concerns about sticky inflation. The market repriced the risk of US Fed rate hikes, the US dollar index hit a fresh 18-month high, and gold and silver prices fell sharply. In the spot market, inquiries were active, but downstream wait-and-see sentiment was thick, and actual transactions fell short of expectations. Quotes in the Shanghai region were concentrated at a discount of 30-40 yuan/kg to the SHFE 2612 contract, with deals leaning toward negotiation to parity with TD.

[SMM Precious Metal Express] US September CPI rose 3.7% YoY, exceeding the market expectation of 3.6%, and rose 0.3% MoM (expected 0.2%). Core CPI rose 2.6% YoY (expected 2.5%) and 0.6% MoM, marking the largest increase in nearly five months. Following the data release, market expectations for a Fed rate hike in October rose to 33%.