Greetings,
United States: The CPI report massively overshot market expectations.
While these price gains are substantial, they are not that unusual from a historical perspective. We just haven’t seen such increases in recent years, especially in the core CPI.
The probability of a rate hike next year rebounded, essentially offsetting last week’s lousy employment report.
Eurozone: The EC boosted its forecasts for euro-area growth.
Cryptocurrency: The crypto market has exceeded US currency in circulation.
Equities: Wednesday’s increase in VIX was impressive. This scatterplot shows the daily percent changes in VIX futures vs. the S&P 500 futures.
The VIX curve inverted.
Credit: Bets against investment-grade bonds are at multi-year highs.
Food For Thought: Retail store closures:
Edited by Daniel Moskovits
Contact the Daily Shot Editor: Editor@DailyShotLetter.com
