Beijing might be struggling to cope with sluggish demand, but at least there's something to cheer in Washington as we push through the dog days of summer.

US consumer prices advanced 3.2% in July (year-over-year), the first increase in 13 months but, notably, 0.1% lower than consensus while core came in line at 4.7%. Thursday’s print reinforced the market’s optimism that after summer we’ll see a less aggressive Fed, which may have hiked for the last time this cycle.