401 days ago
The surprise jump in French and Spanish inflation (CPI) helped the euro rebound. French consumer prices rose 7.2% in February, and Spanish 6.1%, increasing bets of further interest rate hikes by the European Central Bank. Stocks are expected to open lower in the US as treasury yields climbed slightly higher.
402 days ago
The focus of the week will be PMIs for US, Europe, UK, and China. Inflation data, with CPI for Europe, and Japan will also be important. The week is also busy with earnings from Salesforce, Broadcom, Costco, AMC, and #tesla analyst meeting Wednesday.
405 days ago
US inflation, as measured by the PCE, came at 0.6% for Core PCE, higher than the 0.4% expected. The reading on the Fed's favorite gauge of inflation puts more pressure on the Fed to raise rates higher and keep them higher for longer. Markets reacted with stocks dropping and bond yields rising slightly, particularly the short end of the yield curve. The hot PCE doesn't change necessarily change the narrative and more importantly will be the US jobs report which will arrive on March 10, with CPI a few days later on March 14th.
405 days ago
The S&P500 lost 2% this week on the back of rapidly climbing US Treasury yields. Traders continue to closely follow movements in yields as these represent a big risk for valuations. Yields have been climbing back up, despite inflation expectations coming down, as it is not coming down as fast as the Fed would like them to come down. Market volatility is also rising.
406 days ago
Core prices in the eurozone increased by 5.3%, more than an initial reading of 5.2% expected. It is likely cementing the European Central Bank’s plan to raise interest rates by another half-point next month.
