What’s in Today’s Report:
- What the Latest Fed Speak Means for Markets (Updated for Powell, the ECB, and RBA).
Futures are sharply higher on encouraging Chinese inflation data and a drop in the U.S. Dollar.
Chinese PPI (2.3% vs. (E) 2.8% y/y) and CPI (2.3% vs. (E) 3.2% y/y) both declined from last month and came in under expectations, providing more evidence that the global economy has hit “peak inflation.”
The encouraging Chinese inflation data combined with yesterday’s hawkish ECB is pushing the dollar 1% lower.
Today there are no notable economic reports but there are several Fed speakers, including Evans (10:00 a.m. ET), Waller (12:00 p.m. ET) and George (12:00 p.m. ET). If they sound optimistic on inflation, that will help extend this morning’s rally.