Get Ready To Move Markets: U.S. CPI, BoJ Governor, Palantir, and SPR Releases! #investing
The U.S. CPI release due on Tuesday could have a massive impact on market expectations for Federal Reserve interest rates. Meanwhile, Kazuo Ueda is expected to become the next Bank of Japan governor and White House economic advisor Lael Brainard is heading to Washington. Wall Street markets are likely to open slightly higher today, while crude faces some pressure from the SPR release. The January CPI report could provide insight into wages and prices in the U.S., with analysts expecting a 0.5% monthly increase and 6.2% yearly rise without fuel and energy costs. However, there could be potential for an upside surprise due to business contract resetting and input cost inflation seen in the prior year.
Full Story – U.S. CPI, BoJ Governor, Palantir, and SPR release – what’s moving markets
By Peter Nurse
Investing.com — The January U.S. CPI release is due for release later Tuesday. It could determine market expectations for what the Federal Reserve plans in terms of interest rate hikes shortly. Kazuo Ueda looks set to become the next Bank of Japan governor, while Lael Brainard heads to the White House. Wall Street is set to open just higher, while crude weakens on the planned SPR release. Here’s what you need to know in financial markets on Tuesday, 14th February.
1. U.S. CPI looms large
The latest U.S. consumer price index has the potential to be one of the most important economic releases this year – will it provide room for the Federal Reserve to cut rates later in 2023 or are more aggressive hikes on the agenda?
The January CPI is due out at 8:30 ET (13:30 GMT), and analysts expect the monthly topline figure to rise 0.5% and the yearly figure to rise 6.2%.
A lot of the attention is likely to be on the core release, which excludes fuel and energy prices. It is expected to rise 0.4% for the month and 5.5% for the year, but there could be room for an upside surprise as the blockbuster jobs report earlier this month suggested there could be plenty of wage growth pressure.
“Many business contracts typically reset in January, and companies traditionally set new prices, which are seldom fixed lower,” said Stephen Innes at SPI Asset Management. “January price inflation also correlates with input cost inflation from the prior year — which was…