The Cboe volatility index <.VIX> was last at 20.71 points, falling during the session to its lowest point since the start of the month. The VIX a week ago logged its largest ever intraday jump and closed at over 38 points, its highest closing level since October 2020.
Part of Monday’s calm may have stemmed from a market holiday in Japan, with the country’s Nikkei index <.N225> and yen currency <JPY=> at the center of the latest global storm in markets.
But investors were looking ahead: Wednesday’s U.S. consumer price index report will give a crucial read on inflation with markets now worried that an overly depressed CPI number will fan fears of a downturn. A weaker-than-expected jobs report was one of the catalysts for the recent market selloff, as some investors suspect the Fed may be too late in cutting interest rates.
Tuesday’s report on U.S. producer prices provides an inflation-data appetizer ahead of Wednesday’s main course.
Inflation also was top of mind in India, where data on Monday showed retail inflation fell in July to a near five-year low.
