Yazar: Geoffrey Smith
Investing.com – The long-awaited rise in inflation rates begins with the arrival of March price data. Amazon (NASDAQ 🙂 is likely to win the fight to avoid unionized workforce, and OPEC + members have produced more than they should.
What you need to know in financial markets on Friday, April 9:
1.Inflation begins to rise
China’s March inflation data confirmed that the long-anticipated rise in prices started on an annual basis.
PPI increased by 4.4% year-on-year, the fastest increase since July 2018 and exceeded expectations. CPI, on the other hand, rose to 0.4% year-on-year compared to the -0.2% reading in February.
The recovery was largely due to the base effect in oil prices a year ago. Similar effects are likely to be seen in the US PPI. Prices are expected to rise by 0.5% month-on-month and 3.8% year-on-year.
The Fed said it expects higher-than-normal inflation rates to be a transient period, focusing instead on the pace of the labor market recovery.
2. Europe’s vaccine program is gaining momentum, unlike its factories
Europe’s slow paced vaccination campaign is finally showing signs of recovery. German Health Minister Jens Spahn tweeted that Europe’s largest economy has distributed 1.375 million vaccines in just the last two days. This shows that Germany only allows general practitioners to be vaccinated against Covid-19 this week.
The four major economies of the euro zone have vaccinated 13 to 15% of the adult population. This is still very low compared to the US and the UK, but the gap is closing now. Italy, one of the countries hit hardest, according to the Bloomberg report, will likely stretch the restrictions on workplace and social life with a decree in response to falling infection rates.
However, economic data from Europe is mixed. German, French and Spanish industrial production declined in March.
3.US stocks will rise
US stocks, which closed at record levels on Thursday, are preparing to rise at the opening. Quiet bond markets were hardly affected by the reopening of the economy.
It increased by 68 points and rose 0.1%. As the re-opening trade started to gain strength again, it lost 0.2%.
Among the stocks that may be in the spotlight are McDonald’s (NYSE :), which will close their last restaurant in Walmart (NYSE 🙂 stores, and Walt, whose plan to reopen the Disneyland theme park at the end of the month, has found more media coverage as a symbol of a wider trend across the country. Disney (NYSE 🙂 var.
4. Amazon employees’ union process
Employees at Amazon’s large warehouse facility in Alabama appear to be against forming unions, according to preliminary results from the election.
Half of the votes were counted, and anti-union voters were 2: 1 ahead, according to various reports.
The voting attracted attention as Amazon’s facilities in the US and, in general, its precarious economic position would set a possible precedent for service industry personnel, whose precarious economic position emerged sharply during the epidemic.
5.Oil steady while OPEC + discipline decreases
Crude oil prices continue to show calm movements amid uncertainty about whether crude oil will recover enough to absorb increased supply and demand.
S&P Global (NYSE 🙂 Platts survey showed that OPEC + members’ production increased by 450,000 barrels per day in March. Russia and Iraq, the group’s second and third largest exporters, produced above the agreed limits.
Libya and Iran, the two countries not covered by the agreement, also increased their production: Iran’s production increased by 130,000 barrels per day to 2.3 million barrels, while Libya saw an eight-year peak at 1.19 million. It plans to produce 1.45 million barrels per day by the end of the year.
It was $ 59.69, up 0.2%, and remained calm at $ 63.20.