Market Update: Wednesday, April 11, 2018

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Daily Insights

  • Inflationary pressures broad, but scale still manageable. Recently released core inflation data (ex-food and energy components) for U.S. consumers (+2.1%) and producers (+2.7%) failed to garner significant attention from investors over the past two days. With tightening labor market conditions, fiscal stimulus with the economy already growing ahead of potential, and continued dollar weakness (among other drivers), inflation appears to remain manageable. In addition, the readings, though above 2.0%, are unlikely to have a meaningful impact on the Federal Reserve’s preferred inflation measure, the personal consumption expenditure (PCE), amid offsetting price movements in key areas–increases in physician services were offset by lower hospital costs, for example. And with the most recent PCE Index reading at 1.6%, the (modest) pickup in price momentum is more welcoming than worrisome.

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Wednesday

Thursday

  • Weekly Jobless Claims (Apr 7)
  • France: CPI (Mar)
  • Eurozone: Industrial Production (Feb)
  • ECB: Monetary Policy Meeting Accounts
  • Bank of Mexico: Overnight Rate
  • BOE: Credit Conditions and Bank Liabilities Surveys
  • China: Trade Balance (Mar)
  • China: Imports & Exports (Mar)

Friday

  • Univ. of Michigan Sentiment (Apr)
  • Germany: CPI (Mar)
  • Eurozone: Trade Balance (Feb)

 

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