Group 1 - The core point of the news is that the U.S. Producer Price Index (PPI) unexpectedly decreased by 0.1% month-on-month in August, which is below the market expectation of a 0.3% increase, indicating a relief in inflationary pressures at the production level [1] - The year-on-year PPI rose by 2.6% in August, lower than the revised previous value of 3.1% and the market expectation of 3.3% [1] - Service costs fell by 0.2%, marking the largest decline since April, with wholesale profit margins for machinery and vehicles dropping by 3.9% [1] Group 2 - The prices of final demand goods increased by 0.1% month-on-month in August, marking the fourth consecutive month of increase, with tobacco products leading the rise at 2.3% [1] - Despite expectations for a strong Consumer Price Index (CPI) in August, the unexpected decline in PPI provides the Federal Reserve with more room for easing [1] - Market expectations indicate that the Federal Reserve is likely to implement a 25 basis point rate cut in the upcoming meeting, with further cuts anticipated through the end of the year [2]

Core Viewpoint - The market fully priced in a 25 basis point rate cut by the Federal Reserve during the September FOMC meeting, with significant trading activity in federal funds futures contracts [1] Group 1: Market Expectations - The overnight index swap (OIS) rate linked to the Fed's September policy meeting dropped to a daily low near 4.08%, indicating a 100% probability of a 25 basis point rate cut [1] - The market currently anticipates a total of 62 basis points in rate cuts across the remaining three FOMC meetings this year, an increase from 59 basis points at the previous close [1]