Good Morning Traders!
It is Thursday 16th of February, today we see the release of US PPI YoY which is expected to cool off moderately, but will this be the case?
Here are some other things to look out for:
Sentiment
The dollar retreated from yesterday's gains, while treasuries advanced as markets reduced bets on the Federal Reserve tightening monetary policy. Later in the day, investors will be watching speeches by officials from the Federal Reserve, the Bank of Canada, the European Central Bank, and the Bank of England. European stocks rose a fourth consecutive day while us equity futures swung to a loss.
Most investors and central bankers in the United States underestimated how high inflation would rise last year. They may now be underestimating how high interest rates will have to go in order to bring it back down.
Profits have reached their highest level in 70 years, allowing us to continue our hiring binge. Now, margins are shrinking, which could indicate tougher times ahead in the labor market.
The battle over US fiscal policy between President Joe Biden and House Speaker Kevin McCarthy is set to heat up after the Congressional Budget Office warned of a significant deterioration in the federal budget yesterday.
Docket
8:30 AM ET
US PPI YoY data for January
Median Forecast 5.4% | Prior 6.2% | Range 5.5%/5%
US Housing Starts Number data for January
Median Forecast 1.353M | Prior 1.382M | Range 1.46M/1.17M
US Weekly Initial Jobless Claims
Median Forecast 200K | Prior 196K | Range 210K/187K
11:30 AM ET
US sells $75 bln of 4-Week Bills
1:00 PM ET
US sells $9 bln of 30 Yr TIPS
Speakers
8:00 AM ET
ECB's Nagel Speaks - Giving a speech in berlin on `use Europe's opportunities: reforms for more prosperity and stability'
8:45 AM ET
Fed's Mester Speaks - Speaking at an event hosted by the global interdependence center in Sarasota, Florida.
(Text: Yes. note: Fed's Mester will participate virtually)
10:00 AM ET
ECB's Lane Speaks - Giving a lecture at the national institute of economic and social research in London.
11:00 AM ET
BoC's Gov. Macklem Speaks - Appearing before Parliament.
12:00 PM ET
BoE's Pill Speaks - Speaking at the Warwick university in a fireside chat on recent monetary policy.
1:00 PM ET
ECB's Stournaras Speaks - Speaking at an event of the German-Greek chamber of commerce.
ECB's Makhlouf Speaks - Giving a speech at the London school of economics.
1:30 PM ET
Fed's Bullard Speaks - Discussing the US economy and monetary policy at an event hosted by the greater Jackson county chamber.
(Text: yes, Q&A yes, with both audience and media)
2:45 PM ET
ECB's De Guindos Speaks
4:00 PM ET
Fed's Cook Speaks - Giving welcoming remarks at a Sadie collective research reception hosted at the Brookings Institution in Washington.
(Text: yes. Q&A: no)
Good Luck Today!