Sevens Report – Market Multiple Table Chart
What’s in Today’s Report:
- Market Multiple Table Chart
- What CPI Means for Markets
- EIA Analysis and Oil Update
Futures are slightly higher following better than expected economic data.
Chinese exports handily beat expectations in March rising 14.8% vs. (E) -7.0%, in what is the latest signal that the global economy remains resilient.
On inflation, German CPI met expectations rising 0.8% m/m and 7.4% y/y, numbers that are still too high in aggregate, but won’t make the ECB incrementally hawkish.
Today focus will remain on inflation and the labor market via PPI (E: 0.0% m/m, 3.0% y/y), Core PPI (E: 0.3% m/m, 3.4% y/y) and Jobless Claims (E: 233k). PPI is expected to show moderation and importantly PPI is viewed as a quasi-leading indicator to CPI, so if numbers come in under expectations that’ll increase hopes inflation is truly easing. For jobless claims, the higher the better as it implies normalization in the labor market, something the Fed wants to see before it can pause.
