Are Credit Spreads Confirming Growth Worries?

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What’s in Today’s Report:

  • Are Credit Spreads Confirming Growth Worries?

Futures are bouncing modestly after Thursday’s declines and following better than expected EU inflation data.

Regional German, French and Italian inflation metrics were better than expected, reinforcing expectations for a rate cut from the ECB next week.

On tariffs, there was no new news overnight, but Trump will likely speak with reporters again during/following his meeting with Zelensky later today.

Today focus will be on the Core PCE Price Index (E: 0.3% m/m, 2.6% y/y) and put simply, this number needs to come in at or under expectations to ease inflation anxiety and help support stocks.

On the trade front, Trump will be signing a minerals deal with Ukrainian President Zelensky this morning and while there’s nothing specific about trade on the agenda, it’s possible Trump talks about tariffs, which obviously could move markets.

Finally, we have one Fed speaker today, Barkin at 8:30 a.m. ET.