Weekly Market Analysis / 14 August -18 August 2023

Last week, inflation data in Germany and the USA came to the fore in global markets. In Germany, consumer price index (CPI) increased by 0.3% monthly in July, while annual inflation realized as 6.2% in line with expectations. After the international credit rating agency Fitch Ratings surprisingly downgraded the long-term credit rating of the United States last week, Moody's, another credit rating agency, lowered the credit ratings of 10 small and medium-sized banks in the United States, while some large-scale banks The announcement that it could take a similar decision for the company affected the global markets negatively. In the US, the consumer price index increased by 0.2% monthly in July, while annual inflation was realized as 3.2%, slightly below the expectations. Consumer prices excluding food and energy increased by 0.2% monthly, while annual core inflation was 4.7%. The producer price index in the US, on the other hand, increased by 0.3% monthly and 0.8% year-on-year in July. Stock markets recovered as inflation remained below expectations in the US, raising hopes that the Fed will be able to rein in inflation without putting the economy in a recession