Macro Briefing: 15 March 2024

* A key source of US economic strength: workers don’t fear layoffs
* Commercial real estate woes weigh on cities’ finances
* Copper price surges amid concerns over supply risk
* Retail sales in US rebound in February after January’s steep decline
* US jobless claims remain low for week through Mar. 9
* US producer price inflation is hotter than expected for February:

US 10-year Treasury yield rose to a two-week high after another hot inflation report is released on Thursday. Wholesale inflation jumped 0.6% in February, well above expectations. The news follow’s Tuesday’s release of consumer price inflation for February, which delivered a second month of firmer-than-expected data. “In a way, [Thursday’s data] was the past month in microcosm — sticky inflation combined with signs of softness elsewhere in the economy,” says Chris Larkin at E*Trade from Morgan Stanley. “The questions now are: Will traders rethink how soon the Fed will cuts rates? And will that slow down the stock-market rally in any meaningful way?”

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