Inflation Concerns Eases Amid Lower Than Expected Core CPI Data
Amid rising concerns on inflation, today's release of Consumer Price Index (CPI) data for February is among the most anticipated event of the month. The CPI acts as a gauge for inflation, where it measures the average change in prices over time that consumers pay for a basket of goods and services.
The CPI data vs Analysts' estimates is as follows,
CPI: 0.4% vs Expected 0.4%
CPI YoY: 1.7% vs Expected 1.7%
Core CPI: 0.1% vs Expected 0.2%
Core CPI YoY: 1.3% vs Expected 1.4%
Note that Core CPI excludes the volatile food and energy prices, while CPI is an all items index.
Considering the above CPI data that is relatively tamed, we can expect the market's concern about a spike in inflation to be eased for the time being. We also saw the 10-year Treasury yields sliding lower, and an upward push in the stocks pre-market in reaction to a positive miss in the Core CPI data.
As such, I expect the broader stock market to stay relatively green today, at least until the $58 billion auction in 10-year notes that will happen later today, which may provide further indication on where Treasury yields may be headed going forward. Thus, market participants in the stock market should continue paying close attention to the situation surrounding the bond market as it will help provide you with insights on what you can expect for the day's movement.
Invest safe.
This is not investment advice so please do your own due diligence!
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The CPI data vs Analysts' estimates is as follows,
CPI: 0.4% vs Expected 0.4%
CPI YoY: 1.7% vs Expected 1.7%
Core CPI: 0.1% vs Expected 0.2%
Core CPI YoY: 1.3% vs Expected 1.4%
Note that Core CPI excludes the volatile food and energy prices, while CPI is an all items index.
Considering the above CPI data that is relatively tamed, we can expect the market's concern about a spike in inflation to be eased for the time being. We also saw the 10-year Treasury yields sliding lower, and an upward push in the stocks pre-market in reaction to a positive miss in the Core CPI data.
As such, I expect the broader stock market to stay relatively green today, at least until the $58 billion auction in 10-year notes that will happen later today, which may provide further indication on where Treasury yields may be headed going forward. Thus, market participants in the stock market should continue paying close attention to the situation surrounding the bond market as it will help provide you with insights on what you can expect for the day's movement.
Invest safe.
This is not investment advice so please do your own due diligence!
Support this idea with likes and share your thoughts below.
