Annual Inflation Rate in Germany at Ten Percent

Major market averages start off Thursday's trading session deep into negative territory after retail inflation came in hotter on headline and core. Early on the Nasdaq Composite (COMP) was lower by 2%. Additionally, the S&P 500 (SP500) has declined by 1.3%, and the Dow (DJI) is lower by 0.9%.

Among the 11 S&P sectors, 10 of the 11 trade lower on Thursday with Energy being the only leader. Also the Consumer Discretionary segment has suffered the largest losses.

Across vital macro data, U.S. CPI rose 0.4%, more the forecast, to an annual rate of 8.2% in September. Core CPI rose 0.6% to 6.6%, also more than expected and topping the March peak. The core level is the highest in 40 years. The core rate "is up largely because of another 0.7% monthly increase in shelter costs, which should be declining a year from now due to a peak in home values that result from the surge in mortgage rates,"

Corporatewise, Semiconductor and chip equipment manufacturers could come under pressure after Applied Materials (AMAT) downgraded its October quarter guidance, citing U.S. government’s curb on China chip exports.

European markets were higher today. As of 5 p.m. CET, the Stoxx Europe 600 Index declined 0.22%, the British FTSE 100 gave up 0.39% while the French CAC 40 Index retrared 0.52%, but German DAX climbed 0.14%. Annual inflation rate in Germany was confirmed at a rate of 10% for September.

Elsewhere, Asian markets traded lower today. Japan’s Nikkei 225 fell 0.6%, China’s Composite Index fell 0.3%, while Hong Kong’s Hang Seng Index fell 1.87%. Australia’s S&P/ASX 200 slipped 0.1%, while India’s BSE Sensex fell 0.4%. The total amount of loans in Japan rose 2.3% YoY in September, while producer prices in Japan climbed by 9.7% YoY in September.