Marketmind: All about CPI | One America News Network

Traders work on the NYSE floor in New York
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 8, 2021. REUTERS / Brendan McDermid

December 10, 2021

Looking back on a day ahead from Sujata Rao.

Inflation watchers were greeted on Friday by news that Japan’s wholesale inflation hit a record 9.0% in November, rising for the ninth consecutive month. This news sets the stage for the release of the US CPI which economists predict at 6.8%, the highest level since 1982. Some are even expecting a headline number with “” 7-handle”.

So Americans are so worried about inflation that President Joe Biden – facing next year’s midterm elections – issued a statement saying the data would not “reflect today’s reality” and the price increase will soon subside.

In any case, the Federal Reserve looks almost certain to accelerate stimulus relief when it responds next week – all data suggest a strong economy and tight labor market. tight, with the weekly unemployment rate on Thursday much lower than expected.

Even the Bank of Japan will discuss at its meeting next week about emergency funding during the pandemic, Reuters reported on Friday.

Unsurprisingly, economists polled by Reuters predict higher bond volatility ahead, though they also see US 10-year yields ending 2022 around 2. % – just 50 basis points higher than it is now.

US Treasury yields are on track for their biggest weekly gain since March, after three weeks of declines. Stock markets are reasonably buoyant – while world stocks are set for their biggest weekly gains since March; European stocks are falling even though Wall Street futures are heading north.

Meanwhile, bets on a UK rate hike next week will fall further after data showed GDP rose 0.1% in October (0.4% forecast), coupled with a sharp contraction in the manufacturing and construction sectors.

(Graphic: US CPI,

Key developments that will provide more direction for the market on Friday:

-The real estate developers downgraded are China Evergrande and Kaisa, citing foreign bond defaults

– The European Commission has published draft rules to give drivers for companies like Uber and Deliveroo employee benefits.

-ECB Speakers: Chairman Lagarde, board members Panetta, Weidman and Villeroy BIS head Carstens

-The ultimate service PMIs everywhere

-The final German CPI

-US CPI / University of Michigan Inflation Expectations Index and Sentiment

-How to evaluate Spain/UK ratings

(Reporting by Sujata Rao; editing by Karin Strohecker) Marketmind: All about CPI | One America News Network

Bobby Allyn

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