Reply To: Traders Market Weekly: APR 3-9 — Yield Inversion & Inflation concerns

#35292
Truman
Participant

Eurozone’s February PPI +1.1% m/m (expected +1.3%; prior +5.1%) and +31.4% yr/yr (expected +31.5%; prior +30.6%)
Germany’s February Factory Orders -2.2% m/m (expected -0.2%; prior +2.3%); March IHS Markit Construction PMI 50.9 (prior 54.9)
UK’s March Construction PMI 59.1 (expected 57.8; prior 59.1)
Spain’s Consumer Confidence 53.8 (prior 89.8)
The ECB’s Chief Economist Lane, though, still expects inflation to peak in the middle of this year, albeit with a caveat that a lot still depends on what happens in Ukraine.
ECB member Wunsch, meanwhile, sees a possibility of the Deposit Rate hitting 0.00% by end of year (versus -0.50% currently).
German factory orders were much weaker than expected in February and added to the negative investor sentiment.
Reports suggest more sanctions for Russia will be forthcoming.