“China cut bank reserve requirements by 25 basis points in the latest step to help support the Chinese economy. And there are signs these measures are starting to have an impact,” said Tom Essaye, founder of Sevens Report Research.
Oil Futures Drop on Demand Concerns as U.S. inflation figures prompt concerns of a ‘higher for longer’ Fed policy rate, said Tyler Richey.
Tom Essaye, founder of Sevens Report Research, highlights recent economic shifts. U.K. GDP drops after strong wage data, while EU Industrial Production declines. Rates markets maintain a 75% likelihood of an ECB rate hike this week.
Tom Essaye, founder of The Sevens Report, unravels how the Consumer Price Index (CPI) influences market dynamics, potentially affecting a more hawkish Fed and stocks.
Delve into the analysis from Sevens Report Research, shedding light on the robustness of global oil demand driving the market to new highs. While the market displays an upward trend, caution flags are raised as futures reach overextended levels, signaling a potential profit-taking pullback.
CPI impacts two of the three pillars of the rally: disinflation and expectation the Fed is done with rate hikes,” Essaye noted.
Tech shares have been driving the major stock indices so far this week, as focus turns ahead to CPI tomorrow, Essaye writes.
CPI remains the most important monthly economic metric for the simple reason that if CPI does not continue to decline, markets will have to price in a more hawkish Fed.
Tom Essaye, president of Sevens Report Research, joins BNN Bloomberg for his cautious outlook for the markets and getting more defensive.
The fundamental focus of the oil market has shifted from demand to the supply side as Russia and Saudi Arabia caught markets off guard with their output cut extension announcements. Factoring in the extended cuts, many forecasts reflect deepening supply deficits in physical markets into the end of the year. This has resulted in the latest leg higher to fresh 2023 highs in oil.