The U.S. inflation was more than what was expected. This made the market panic. There was a rise seen in the year on year consumer price index. It raised by 2.1% in January. This meant that the Federal Reserve could raise the interest rates earlier than expected. The markets in the U.S. did not get shaky after the U.S. inflation figures.
There was no volatility or panic seen in the trading sessions in the U.S. The Dow Jones Industrial Average went down by 150 points when the announcement was made, but it climbed up by 100 points to show only 55 points down. Even though Dow went down, the mood is calmer than normal.
The European markets fell back as soon as the U.S. inflation figures were announced. But, they were able to come back to the positive territory as the day progressed. The German and the French markets all showed a climb as the day progressed. The industrial production of the Eurozone showed remarkable progress and beat everyone’s expectations. The GDP growth was as per the forecasts for the fourth quarter of 2017.
The businesses are doing well in the United Kingdom. The International Monetary Fund (IMF) feels that the UK will have to do more in order to boost its productivity.