Take Five: Panic Over? World Markets Themes For The Week Ahead

www.oann.com | 3/11/2019 | Staff
chicana948 (Posted by) Level 3
LONDON (Reuters) – Following are the five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them.

As the U.S. yield curve makes up its mind whether to invert or not, investors seeking reassurance that we are in a Goldilocks era of non-inflationary growth will get to scour two monthly price gauges this week.

Wednesday - Labor - Department - March - Consumer

On Wednesday, the Labor Department is expected to report that its March Consumer Price Index rose 0.3 percent on the month and 1.8 percent over the year – a reading that would reinforce subdued underlying inflation and validate the Fed’s almost about-face after four hikes last year.

CPI – a proxy for overall inflation that factors into cost of living adjustments for Social Security – rose 1.5 percent year to February, the smallest increase since September 2016. The latest reading of the Fed’s favorite inflation measure rose 1.8 percent in the year to January, below its 2 percent target.

Fed - Officials - Reality - Growth - Price

Fed officials have started alluding to a new economic reality of slowish growth and little upward price pressure. Even as wages creep higher, improved productivity curbs firms’ costs.

Minutes of the March Fed policy meeting, to be released on Wednesday, will be cross checked for references to the new “patient” approach and “muted” inflation. The March producer price index, a glimpse of pipeline price pressures, is scheduled for Thursday.

Month - European - Central - Bank - Plans

Just a month since the European Central Bank put plans to normalize policy on hold and delayed a rate hike into 2020, further signs of weakness in the economy and a whiff of panic among investors puts the spotlight back on the central bank.

A woeful set of German industrial orders data this week pushed German Bund yields back into negative territory and though a U.S.-China trade deal could be in sight, it looks...
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