There’s a lot riding on tomorrow’s US consumer inflation report for December for markets, which are pricing in relatively upbeat news. Quite a lot of the stock market’s upbeat profile recently is closely linked to forecasts that the worst has passed for inflation, which leaves room for the Federal Reserve to start cutting interest rates. In that case, the market has a green light to reprice equity prices up, which it’s been doing in no trivial degree in recent months. Meanwhile, US Treasury yields have fallen recently, largely for the same reason. Tomorrow’s CPI report will provide a reality check on the rosy assumptions of late.
Daily Archives: January 10, 2024
Macro Briefing: 10 January 2024
* Houthi militias launch biggest attack to date on ships in Red Sea
* US inflation expected to ease further in Thursday’s report for December
* Will politics be a factor for Fed policy this year?
* World Bank forecasts slowest growth since pandemic in 2024
* BlackRock, world’s largest asset manager, announces job cuts
* U.S. trade deficit unexpectedly narrowed in November:
