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WALL STREET INDEXES MIXED AFTER IN-LINE CPI WHILE OIL CLIMBS AGAIN

The Nasdaq .IXIC and the S&P 500 .SPX are rising modestly on Wednesday after the February consumer price inflation reading was in line with expectations, but oil prices are still flagging a warning signal for prices in March as the Middle East war continues to disrupt supplies.

The Consumer Price Index rose 0.3% last month from January, matching the expectations of economists polled by Reuters, after rising 0.2% the previous month. But the large rise in crude-oil prices since the U.S. and Israel started the war on February 28 is keeping investor focus on the prospects for a sharp increase in inflation down the road.

“Reading too far into today’s CPI in most respects amounts to arguing over the dinner menu on the Titanic, since the economy has struck an energy cost iceberg. In our view, it confirms that underlying inflation is tracking with employment – which is to say – downward trending. We are adding to our long duration in Treasurys,” said Brad Conger, chief investment officer, Hirtle, Callaghan & Co.

Oil trading was choppy on Wednesday as the International Energy Agency $(IEA)$ proposed the release of 400 million barrels of oil, the largest release of oil reserves in its history, to bring down soaring crude prices. But at the last reading U.S. crude CLc1 is still up 2.46% to $85.51 a barrel and Brent LCOc1 is rising to $90.39 per barrel, up 2.95% on the day.

Iran's military command said on Wednesday the world should be prepared for oil to hit $200 a barrel, as three more ships came under attack in the blockaded Gulf. And while investors have been betting that U.S. President Donald Trump will find a quick way to end the war he began alongside Israel nearly two weeks ago, so far there has been no let-up or any sign that ships can safely sail through the Strait of Hormuz. About a fifth of the world's oil has been blockaded behind a narrow channel along the Iranian coast in the worst disruption to energy supplies since the oil shocks of the 1970s.

And following an Iranian warning that Tehran will target U.S. and Israeli banks in the Middle East, Standard Chartered STAN.L began evacuating staff from offices in Dubai. HSBC closed all branches in Qatar until further notice, according to a customer notice.

Elsewhere, shares of Target TGT.N are down about 1% after the retailer said on Wednesday it was lowering prices on over 3,000 products across categories, including apparel, home goods and daily items, in a bid to shore up demand amid stiff competition from other retailers heading into the spring season. Oracle ORCL.N shares surged more than 12% after the software giant's upbeat revenue forecast eased concerns over its hefty spending on artificial intelligence infrastructure.

Here is your morning snapshot:

(Sinéad Carew)

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EARLIER ON LIVE MARKETS:

MIDDLE EAST'S TRADE MIGHT RUNS FAR BEYOND OIL, BARCLAYS SAYS CLICK HERE

US STOCK FUTURES EDGE DOWN WITH IN-LINE CPI CLICK HERE

ITRAXX MORE VOLATILE THAN BOND CASH INDEXES CLICK HERE

ENERGY PRICE SHOCK HISTORY REPEATING ITSELF? CLICK HERE

AJ BELL'S DIY INVESTORS BOUGHT THE DIP CLICK HERE

CAN MARKETS GET COMFORTABLE WITH THE WAR? CLICK HERE

EARNINGS BRIEFLY IMPORTANT FOR EUROPEAN MARKETS; INDITEX, RHEINMETALL IN FOCUS CLICK HERE

BEFORE THE BELL: FUTURES SOFTER, KEEP WATCHING OIL CLICK HERE

MORNING BID EUROPE: IT AIN'T OVER YET CLICK HERE