La inflación de los productores (PPI) 🇺🇸sorprende al alza
- PPI anual 3%, se esperaba 2,6% y el anterior se revisa de 2,4 a 2,6%
Mensual 0,4%, por encima de 0,2% esperado
- PPI subyacente anual 3,4%, por encima del 3,2% esperado
Mensual 0,2% (igual q esperado)
Sobre todo comida👀
1998 → Market crashed 20% as VIX spiked above 40
Rate cuts reversed this trend, leading to new market highs
With recession still months away, markets likely have room to grow
A 10% surge in the Japanese yen within just 5 weeks has occurred only 2 times since 1997:
March 2008 → 60% market crash
September 1998 → 20% decline then new ATH’s
Which one will it be today?
For all of you asking what does this mean:
1. Treasury buy backs improve liquidity in the bonds market that has been living on life support over the last few years as high inflation made bonds unappealing
2. This may be deflationary if the amount of money taken out is larger than the amount we are spending to aid in economic expansion
3. This will likely lead to lowering of interest rates later on.
4. This will improve US credit ratings as it shows that we are paying down our debts, hopefully faster than we are creating new debts.
Hope this helps