Good Wednesday afternoon on this best day of the week,
Running late today but.. you haven’t missed much.
Bonds are about flat on the day as all eyes are on tomorrow’s CPI report. I would expect the report to come in as markets expect. The overall inflation ticking up to 3.2% and the core to drop to 3.8%. If that happens, I would expect a bit of a rally in bonds. Anything lower of course adds fuel to the rally. Anything worse though and we could see a temporary sell off. I do not recommend floating into news that will create volatility. Friday is PPI, and while it too is important and will move markets, is not as impactful as tomorrows data.
A few quick hits from around…
Home prices have been going higher and higher. That’s thanks in part to mortgage rates falling, which has pumped up demand. But supply remains limited, leading to that classic supply and demand problem. Home prices jumped 5.2% on an annual basis in November, up from a 4.7% annual gain in October, according to analytics firm CoreLogic. The new hot spot? Detroit, which had the largest annual price gain at 8.7%. It topped Miami for the first time after the Florida city held the crown for 16 months. Prices are expected to soften next year, but it all depends on how many houses are available.
The global economy managed to weather the effects of inflation and geopolitical tensions better than expected last year, but don’t look for a strong recovery this year, the World Bank said Tuesday. In its semiannual “Global Economic Prospects” report, the multilateral lender said global growth is expected to slow to 2.4% this year, the third consecutive year of deceleration. Weighing on growth are the continuing effects of high interest rates as well as anemic global trade and investments amid rising geopolitical tensions.
Please remain safe and stay healthy, make today great!