By Geoffrey Smith. Investing.com -- Headline inflation in the U.S. fell by more than expected in November to its lowest level this year, as the effect of the coronavirus pandemic and the subsequent recession continued to weigh on the economy. The consumer price index (CPI) fell 0.3%, the Commerce Department said on Tuesday, after a 0.2% rise in October. The core CPI, which strips out volatile energy and food prices, rose 0.1%, the smallest increase since April.
This morning's November CPI report adds another notable inflation improvement. The All Items monthly rates fell from October's low, but still remain well above the 0.3% average for the year. Core inflation, which is a more accurate measure of underlying prices, was also higher than expected, coming in at 0.1%. The year-over-year rate, however, fell to 1.2%, down from October's 1.6%.
U.S. stocks are seen opening higher Tuesday as investors gear up for the release of the crucial November Consumer Price Index (CPI) report, which is expected to show headline inflation falling more than expected. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are all pointing higher, with the Dow set to open up 0.3%, the S&P 500 up 0.2%, and the tech-heavy Nasdaq 100 up 0.4%.
European stock markets traded largely unchanged Tuesday in tight ranges ahead of the release of crucial U.S. inflation data, while the euro and the pound held firm against the dollar. The pan-European Stoxx 600 index was up just 0.1%, while the blue-chip Euro Stoxx 50 index was flat. London's FTSE 100 index was down 0.3%, while the German DAX was up 0.2%.
The U.S. dollar edged lower in early European trade Tuesday amid caution ahead of the release of the latest inflation numbers. The greenback was down 0.1% against a basket of six major currencies, with the euro up 0.1% at 1.2070 and the pound up 0.2% at 1.3460.
Oil prices were slightly higher Tuesday, as investors awaited the release of the latest U.S. inflation data. Brent crude futures were up 0.7% at $49.41 a barrel, while West Texas Intermediate (NYSE:WTI) crude futures were up 0.6% at $46.31 a barrel.
Most Asian currencies fell on Monday, while the dollar rose as markets hunkered down ahead of highly anticipated U.S. inflation data due out on Tuesday. The U.S. dollar index, which tracks the greenback against a basket of six major currencies, was up 0.1% at 93.10.
Gold prices were little changed Tuesday, as investors awaited the release of the U.S. inflation data. Spot Gold was down 0.1% at $1,817.49 per ounce, while U.S. Gold futures were up 0.1% at $1,817.60 per ounce.
Market Overview Analysis by Michael Ashton covering: . Read Michael Ashton's latest article on Investing.com. Michael Ashton, Managing Director of Enduring Investments, wrote in a note to investors on Monday that the U.S. inflation report due out on Tuesday will be the focus of the markets in the coming days.
Commodities Analysis by Barani Krishnan/Investing.com covering: Brent Oil Futures, Crude Oil WTI Futures, ProShares UltraShort Bloomberg Crude Oil, PowerShares DB Oil Fund, and United States Oil Fund. Barani Krishnan wrote in a note to investors on Monday that the U.S. inflation report due out on Tuesday will be an important indicator for the Commodities markets, as it will provide an indication of the direction of the U.S. economy.
FILE PHOTO: A trader works on the floor of the New York stock Exchange (NYSE) in New York City, U.S., November 29, 2022. The U.S. stock market is expected to open higher Tuesday as investors wait for the release of the crucial November Consumer Price Index (CPI) report, which is expected to show headline inflation falling more than expected.
investors are also keeping an eye on the U.S. election results, as well as the progress of stimulus talks in Congress. The U.S. Senate is expected to vote on a new coronavirus relief package later this week.
The U.S. Federal Reserve is also keeping a close eye on the inflation data and is likely to continue its accommodative monetary policy stance until inflation returns to its 2% target. The Fed's next policy meeting is scheduled for December 15-16.
The impact of the Consumer Price Index report on the markets will be closely watched and could have a significant impact on stocks, Commodities, and currencies.
