• U.S. consumer prices increased marginally in February amid a decline in gasoline prices and a moderation in the cost of rental accommodation, the latest indication that an anticipated pickup in inflation likely will be only gradual.
Strong inflation numbers in January had sparked fears that price pressures were accelerating, leading financial markets to expect a more aggressive pace of interest rate increases from the Federal Reserve than is currently anticipated.
“These figures should satisfy Fed policymakers that inflation is not too cold, as last spring’s numbers hinted at, or too hot, as might have been inferred from the January print,” said Michael Feroli, an economist at JPMorgan in New York.
• The Labor Department said on Tuesday its Consumer Price Index rose 0.2 percent last month after jumping 0.5 percent in January. In the 12 months through February, the CPI rose 2.2 percent, up from 2.1 percent in January as the flat reading from last year dropped from the calculation.
Excluding the volatile food and energy components, the CPI gained 0.2 percent after accelerating 0.3 percent in January. The year-on-year increase in the so-called core CPI was unchanged at 1.8 percent in February.
After the data, Fed funds futures data showed a lower chance of a fourth rate hike this year.
• The dollar fell against most major currencies on Tuesday after U.S. inflation data for February was in line with expectations, suggesting the Federal Reserve remained on track to raise interest rates at a gradual pace.
The dollar also lost traction after U.S. President Donald Trump fired Secretary of State Rex Tillerson and replaced him with Central Intelligence Agency Director Mike Pompeo, marking the biggest shakeup of the administration’s Cabinet.
In late afternoon trading, the dollar index fell 0.2 percent to 89.694, as the euro gained 0.5 percent on the day to $1.2363.
• Rex Tillerson is out as secretary of State, ending a tumultuous tenure as America's top diplomat that was marked by a series of public disagreements with his boss — President Donald Trump.
Trump plans to appoint CIA Director Mike Pompeo to replace the former Exxon Mobil chief executive. The president picked deputy CIA Director Gina Haspel to run the spy agency.
• Pompeo’s views typify Trump’s hard line stance on international political issues, including the Iran nuclear deal and North Korea’s nuclear and missile programs, analysts said.
• Donald Trump has fired Steve Goldstein, the State Department official who challenged his account of firing Rex Tillerson.
The latest dismissal came in the midst of chaos in the White House after the President decided he would sack Mr Tillerson, who had served as his Secretary of State.
Following that firing, Under Secretary of State Steve Goldstein released a statement that appeared to contradict Mr Trump's account of the sacking. In it, he said that Mr Tillerson hadn't heard about being fired until the President sent a tweet announcing it.
Mr Goldstein said the former Exxon Mobil CEO was "unaware of the reason" he was fired and "had had every intention of staying," feeling he was making progress on national security.
• Several green groups criticized the Trump administration’s choice on Tuesday of CIA Director Mike Pompeo to replace Rex Tillerson as Secretary of State, saying his past skeptical comments about global warming show he is less suited to run U.S. foreign policy about climate change than the former Exxon Mobil CEO.
• U.S. President Donald Trump signaled on Tuesday that conservative commentator Larry Kudlow is the front-runner to become the top economic adviser at the White House, though he said he was also speaking with other candidates.
Kudlow was an economic adviser to former Republican President Ronald Reagan and spent time on Wall Street before becoming a recognized face on cable television.
• U.S. President Donald Trump is seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology and telecommunications sectors, two people who had discussed the issue with the Trump administration said on Tuesday.
• The most powerful lawmaker in the U.S. Senate on Tuesday threw cold water on the prospect that the chamber will pass legislation rewriting or even ending tariffs that President Donald Trump put on steel and aluminum imports last week.
• Differences between Japan and South Korea on how to handle North Korea emerged on Tuesday with South Korea upbeat on prospects but a more cautious Japan demanding that North Korea account for Japanese people it says North Korea abducted decades ago.
• Japan’s core machinery orders rebounded in January from a steep decline the previous month, handily beating expectations in a sign that capital spending will continue contributing to economic growth.
The 8.2 percent rise in core orders, a highly volatile data series regarded as an indicator of capital spending in six to nine months, was more than the 5.6 percent increase expected by economists.
• Oil fell more than 1 percent on concerns over rising U.S. production and as equities fell, erasing earlier gains driven in part by the firing of U.S. Secretary of State Rex Tillerson.
• Brent crude futures LCOc1 dropped 31 cents, or 0.5 percent, to settle at $64.64 per barrel. U.S. West Texas (WTI) crude futures CLc1 fell 65 cents, or 1.06percent, to $60.71 per barrel.
Reference: Reuters, CNBC, Independent
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