Is the VIX Broken?
What’s in Today’s Report:
- Is the VIX Broken?
Futures are modestly higher following in-line inflation readings from China and more gridlock in Washington as markets look ahead to today’s inflation readings.
Chinese CPI met expectations rising 1.6% and that benign reading will keep stimulus coming in that economy.
Politically, Arizona Senator Sinema left the Democrat party and registered as an independent, although the move is unlikely to change her voting patterns.
Today focus will be on inflation data, specifically PPI (E: 0.2% m/m, 7.2% y/y) and the University of Michigan Five Year Inflation Expectations (E: 3.0%). If those reports come in under expectations and further hint at dis-inflation, it will extend the early rally.
