Author: FX
European Central Bank (ECB) official and Finnish Central Bank Governor Olli Rehn said during European trading hours on Wednesday that higher oil prices should not be the only factor to direct monetary policy decisions. Rehn added that the central bank needs to assess the scope of energy shocks.Additional commentsECB needs to assess whether the energy shock spreads to inflation expectations, wages and core inflation.It’s worth preparing for a protracted conflict in the Strait of Hormuz.If events turned out differently, it would be easier to adjust.Key factors are the strength and duration of the energy shock and any broader pass-through into…
When inflation is running hot, and the economy is weakening at the same time, what exactly is the Fed supposed to do about it? Raise interest rates and risk tipping workers into unemployment? Cut rates and risk letting prices spiral completely out of control? If your answer is “neither sounds great,” congratulations! You’ve just discovered why stagflation is the one word central bankers dread more than any other. Tuesday’s April CPI report made it official. Headline inflation climbed to 3.8% year-over-year — the highest since May 2023 — and rose 0.6% just in the month of April. Core inflation, which…
CPI +2.2% vs +2.2% y/y prelimPrior +1.7%HICP +2.5% vs +2.5% y/y prelimPrior +2.0%The monthly change itself also shows a 1% increase in headline inflation, leading to the annual estimate to cross back above the 2% mark in April. Of note, energy prices once again picked up in recording a 4.7% increase on the month after jumping up by 8.9% in March. That is largely driven by the prices of petroleum products (diesel, petrol and liquid fuel), which were up by 8.2% in April.As for the headline annual estimate, it is largely tied to the sharp acceleration in prices of energy…
Danske Research Team notes global equities slipped modestly, with the S&P500, Nasdaq and Russell2000 all lower. Semi-conductors in the S&P500 underperformed after a strong prior run, while defensive sectors such as healthcare and staples led gains. Asian equities and US and European futures turned mostly higher, suggesting limited follow-through selling.Global stocks see mild pullback”Global equities ended the day lower by 0.3% yesterday, after being down 1% at the lows.””For once, semi-conductors in the S&P500 were among the weakest performers closing 1.4% lower, after being down about 4.5% earlier in the day.””We will not overdo conclusions on such setback after an…
Oil prices slip on teetering Iran ceasefire as Trump heads to China Source link
The U.S. Consumer Price Index rose 0.6% month over month in April 2026, pushing the annual inflation rate up to 3.8%. That’s the highest reading since May 2023! The annual figure not only topped the 3.7% forecast, but core inflation also beat expectations on both a monthly and annual basis, signaling that price pressures are no longer just an energy story. April marked the second straight month of sharp inflation gains after March’s 0.9% jump, when the first shock from the U.S. and Israel’s war with Iran sent oil prices ripping higher. Recall that Tehran’s shutdown of the Strait of…
Iran has restored operational access to 30 of its 33 Hormuz missile sites and retains 70% of its prewar missile stockpile, posing a continued threat to warships and oil tankers, US assessments show.Summary:US assessments reviewed by people with knowledge of the findings show Iran has restored operational access to 30 of the 33 missile sites it maintains along the Strait of Hormuz, according to the New York TimesThe restored sites give Iran the ability to deploy mobile launchers to alternative locations and, in some cases, to launch missiles directly from fixed launchpads within the facilitiesOnly three of the 33 missile…
US President Donald Trump said that he would prioritize trade discussions during his summit with Chinese President Xi Jinping and downplayed the amount of attention they would devote to the Iran war, Bloomberg reported on Tuesday.Key quotes We’re going to be talking to President Xi about a lot of things. I would say, more than anything, trade. We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control.We’re either going to make a deal or they’re going to be decimated one way or…
Brazil’s Lula scraps tax on imports under $50 before election Source link
XAG/USD is flashing a potential bullish technical signal after its 10-day SMA moved above the 50-day SMA. Will price follow through or fade near resistance? Source link