Global Market – Core CPI Inflation data in US & Europe – Next hurdle?
This week, we will discuss Core CPI inflation data from US & Europe, which will set the stage from next monitory policy action by US Fed, BOE, ECB & BOJ. Global market continues to find cues and navigate around whether there will be soft landing or hard landing.
Core CPI, Core Retail sales, Core PPI & Core PCE Price Index
Today we will focus on data which does not include fuel and food price index in inflation, retail sales or Producer price index (PPI) data. In recent times we have seen crude oil & natural gas prices has come down bringing some relief in US & European countries.
Equichain Wealth Advisors: Market View & Opinion
The strong data in this month will compel US Fed, BOE, ECB & BOJ to maintain its tight monitory policy. Next round of central banks meeting starts from
1) BOJ on 10-Mar-23,
2) ECB on 16-Mar-23,
3) US Fed on 22-Mar-23,
4) BOE on 23-Mar-23 &
5) RBI MPC on 3-Apr-23.
We believe, globally market has not factored in continuation of strong monitory policy and another round of strong rate hike followed by hawkish commentary could be negative for risk-on sentiment and bring fresh round of downward move in global asset classes.
We would turn cautious as after this week data which is clearly indicating inflation more sticky than earlier market estimate.