US pre-open: Markets on the decline after disappointing CPI data

US stock futures were expected to decline on Wednesday as US inflation figures came in lower than expected, although they rose in opening deals.

The Dow Jones Industrial Average, S&P 500 and the Nasdaq had all been expected to open lower than Tuesday’s close.

Crude prices rose slightly on Monday, after a week of steady decline following low oil prices. The boost was due to news of two prominent Libyan oil terminals.

However, the increase was short-lived as West Texas and Brent crude futures were declining again on Wednesday.

Meanwhile, the US CPI was receding by 0.3% month-on-month for November after a consensus expectation of a 0.1% decrease. This markets the largest US CPI fall since December 2008.

The US CPI Ex-Food and Energy month-on-month for November results came in flat.

Analysts were waiting to hear a consensus from the Federal Reserve regarding economic projections.

CMC Markets analyst Jasper Lawler said: “Removal of the language is well overdue since the US economy has been doing OK since the contraction in the first quarter. The Fed is more than likely to use the opportunity of market consensus that it will remove the “considerable time“ language to go ahead and do it.”

Alpari analyst Craig Erlam added: “The decision itself is unlikely to come as a shock, with rates remaining unchanged, it’s the wording in the statement that people are most concerned with.”

In corporate news, Coca-cola, Campbell Soup and Chipotle Mexican Grill were all showing losses in the food sector.

Energy firms like Consol Energy, American Electric Power, were also declining as oil prices continue to slide.