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Global Market – Crude Oil, German bond yield & US Economic data

This week we will discuss rise in crude oil, German bond yield above 2% and also seen rise in US bond yield. This week key US Economic data are CPI & Core CPI inflation data, Retail sales & PPI & Core PPI data.

Last month CPI & Core CPI data were mostly in-line with market expectation and trending lower, we expect this trend to continue as core CPI year-on-year. Retail sales and PPI data came below market expectation and market reaction was surprisingly was negative.

In speech this week US Fed chair Jerome Powell reiterated the need for couple of 2 more rate hike before pause and maintain high interest rate for some period of time. Inflation would continue its downtrend where as any major disappointment in retails sales could negative for market.

Global Market- Crude oil, German bond yield @ 2.34% and US Economic data.

This week we will discuss rise in crude oil, German bond yield above 2% and also seen rise in US bond yield.  This week key US Economic data are CPI & Core CPI inflation data, Retail sales & PPI & Core PPI data.

1) Russia plans to cut its oil output by 500,000 barrels a day from March 2023
2) Oil May Hit $100 Amid China Reopening, Iran’s OPEC Official Says

German 2-year yields touch the highest since 2008.

Increase in Germany bond yield shows sign of rising concern as inflation remains a major concern in near term.  EURO zone is behind the curve as far as raising interest rate is concern compared to US Fed & BOE.  Further tightening of bond yield could be negative for equity & other risk-on asset class.

Equichain Wealth Advisors: Market View & Opinion

In speech this week US Fed chair Jerome Powell reiterated the need for couple of 2 more rate hike before pause and maintain high interest rate for some period of time.  Inflation would continue its downtrend where as any major disappointment in retails sales could negative for market.