Tom Essaye, Founder of The Sevens Report, joined Bryan Curtis and David Ingles on Daybreak Asia, reacting to today’s U.S. equity sell off. To listen to the entire clip go here
What’s in Today’s Report:
Futures are sharply lower as global markets dropped following the Wednesday rout in U.S. stocks.
Nothing new occurred overnight to cause the additional selling this morning and this is all momentum driven.
There was no notable economic data or geo-political news out overnight and the sell-off itself was the focus of most of the financial media.
Today the key event is the Core CPI report (E : 0.2% m/m, 2.3% y/y) out this morning. This release is even more important than before because if it prints “hot” (core CPI above .4% m/m) that will add to the concern that the Fed is going to get more hawkish and that will add another source of pressure on stocks, which we obviously don’t need right now. Conversely, if this number is inline of a little light, that could provide a catalyst for markets to try and stabilize.