Jackson Hole, ten PMI releases, and the BRICS summit. This week will be full of market movements, and we will be there to trade them. Get ready, and let’s roll!
American core producer prices go down
In December, a major measure of American producer prices suddenly slumped and the overall gauge went down more than predicted in the face of lower crude prices, indicating that potential inflation pressures in the American economy are still there.
Without energy and food, producer prices dived by 0.1% from December, which appears to be the first tumble in a year, as follows from a Labor Department report uncovered on Tuesday. From November the overall producer-price index declined by nearly 0.2% following a 0.15 ascend.
Core producer-price gains stood still at 2.7% on an annual basis, confounding estimates for 3%, while the broad indicator surged by up to 2.5%, also intact from the previous outcome. Energy and food prices are traditionally volatile.
The PPI figures, gauging wholesale as well as other selling costs at businesses, drop a hint that prices are gradually firming up. Moreover, they are also in line with the consumer-price report, which disclosed a drag from energy costs. Meanwhile, core inflation stood still, providing the major US bank with little urgency to have rates lifted in the nearer future.
Energy costs slumped by 5.4% from November within final demand PPI for goods, led by a 13.1% sink in gasoline prices. As for food costs, they headed north by 2.6%.
Without trade services, energy and food, producer costs, a gauge preferred by financial analysts for its ability to strip out the most volatile components, moderated to an intact month-on-month outcome, while the annual gain kept to 2.8% for a third straight month.
The PPI for services went down by about 0.1%, which appears to be the first tumble for four months, suppressed by transportation as well as warehousing and also narrower margins for wholesalers and retailers. It had the core index dragged down.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
The Japanese yen fell to its lowest level against the US dollar in 33 years. Read the full report to learn the next target for USDJPY!
The US stock market fell in the third quarter. What's going on and why economists think that the last quarter will be better? Let's discuss it all here.
BlackRock CEO forecasts the Fed may have to raise rates further. The US dollar index (DXY) gains 130 points today. Read the full report to get more fresh news and technical analysis!