What the ECB’s Surprise Taper Means for Markets
What’s in Today’s Report:
- What the ECB’s Surprise Taper Means for Markets
- EIA Analysis and Oil Update
Futures are modestly higher following potentially positive news out of China.
First, on the geopolitical front, Biden and Xi held a call on Thursday night where they discussed avoiding conflict. Second, Chinese regulators clarified they just slowed video game approvals, not halted them and that’s helping Chinese tech and internet stocks to rally.
On COVID, Biden’s mask mandates are getting a lot of headlines but they won’t have any direct market implications.
Today’s focus will be on PPI (E: 0.6%, 8.3%), which will give us the latest insights into inflation and if the number is materially higher than estimates, it will likely cause some mild volatility. We also have one Fed speaker, Mester at 9:00 a.m. ET, and markets will look for confirmation that the Fed will start tapering QE this year, but it will be gradual.
