Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Inflation Spike Begins, Europe's Vaccines, Amazon Vote - What's up in Markets

EconomyApr 09, 2021 06:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com -- The long-awaited spike in inflation rates begins, as price data for March trickle in. Europe's industrial output in March slipped alarmingly. Amazon looks like winning its struggle to avoid unionized labor, and OPEC+ members are pumping more oil than they should. Here’s what you need to know in financial markets on Friday, April 9th.

1. The inflation spike begins

March inflation data out of China confirmed the start of a widely-expected increase in prices, measured in annual terms.

Producer price inflation rose 4.4% on the year, the fastest increase since July 2018 and well ahead of expectations, while consumer price inflation rebounded to 0.4% on the year from -0.2% in February.

The rebound was due largely to base effects caused by the collapse of oil prices a year ago.  The same effects are likely to be reflected in U.S. PPI data due at 8:30 AM ET (1230 GMT). Prices are expected to have risen 0.5% on the month and 3.8% on the year.

The Federal Reserve has said repeatedly it expects to ‘look through’ what it expects to be a temporary period of higher-than-usual inflation rates, focusing instead on the pace of repair in the labor market.

2. Europe’s vaccination campaign steps up a gear, unlike its factories

Europe’s sluggish vaccination campaign is showing signs of picking up at last. German Health Minister Jens Spahn tweeted that Europe’s largest economy had distributed 1.375 million vaccine shots in the last two days alone, something that reflects the fact that Germany only this week started allowing general practitioners' surgeries to vaccinate against Covid-19.

The Eurozone’s four big economies have all now vaccinated between 13%-15% of their adult populations, still far less than the U.S. and U.K., but the gap is narrowing. Italy, one of the worst hit countries, will likely relax its restrictions on business and social life a little with a decree later Friday, in response to falling infection rates, Bloomberg reported. Germany, by contrast, continues to flirt with another 'short, sharp lockdown'.

The economic data from Europe remains mixed at best, however. German, French and Spanish industrial production all fell in March, Germany’s missing expectations by the most in a decade. The numbers make a Q1 GDP contraction considerably more likely.

3 U.S. stocks set to march higher as reopening trades regain momentum

U.S. stocks are set to build on Thursday’s record closes at the opening, with quiet bond markets largely unruffled by the gradual reopening of the economy.

By 6:30 AM ET (1030 GMT), Dow Jones futures were up 68 points, or 0.2%, while S&P 500 futures were up 0.1%. Nasdaq 100 futures were down 0.2%, as reopening trades started to gain strength again.

Stocks likely to be in focus later include McDonald’s (NYSE:MCD), which is closing its last restaurants in Walmart (NYSE:WMT) stores, and Walt Disney (NYSE:DIS), whose planned reopening of its Disneyland theme park at the end of the month is gaining increased media coverage, as emblematic of a broader trend across the country.

4. Amazon workers turned off by union

Workers at a major Amazon (NASDAQ:AMZN) warehouse facility in Alabama appear to have rejected plans to form a union, according to preliminary results from the ballot.

With about half of votes counted, those voting against unionization had a lead of over 2:1, according to various reports.

The vote has drawn attention for its potential to set a precedent for Amazon facilities across the U.S. and for service-sector personnel in general, whose precarious economic position has been harshly exposed during the pandemic.

5. Oil drifts as OPEC+ discipline slips

Crude oil prices continue to drift sideways against a backdrop of rising supply and some uncertainty over whether demand is recovering fast enough to absorb it.

A survey by S&P Global (NYSE:SPGI) Platts suggested that production by ‘OPEC+’ members rose by 450,000 barrels a day in March, with Russia and Iraq, the second and third-largest exporters in the group, both pumping above their agreed limits.

Two countries not covered by the agreement, Libya and Iran, are both increasing output too: Iran’s output rose by 130,000 barrels a day to a two-year high of 2.3 million b/d, while Libya pumped 1.19 million, an eight-year high. It plans to pump 1.45 million b/d by year-end.

By 6:30 AM ET, U.S. crude was up 0.2% at $59.69 a barrel, while Brent crude was flat at $63.20.

Inflation Spike Begins, Europe's Vaccines, Amazon Vote - What's up in Markets
 

Related Articles

Coca-Cola discontinues energy drink in N.America
Coca-Cola discontinues energy drink in N.America By Reuters - May 16, 2021 4

(This May 14 story corrects to fix typos in first and penultimate paragraph.) By Nivedita Balu (Reuters) - Coca-Cola (NYSE:KO) Co said on Friday it would discontinue its energy...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (15)
Adam Paine
Adam Paine Apr 09, 2021 2:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no fear=ignorance. inflation is not good for our economy when 8.5 million people are unemployed and are now having to pay more for everything. Fed is creating a massive problem for our future.
Alex Barabas
AlexB34 Apr 09, 2021 2:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden economics…
Dave Jones
Dave Jones Apr 09, 2021 11:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Everything is awesome! Were going to be rich!
Klaus Weyers
Klaus Weyers Apr 09, 2021 10:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nice to see how many workers are smart enough to see that unions do not help them at all..
danny Levine
danny Levine Apr 09, 2021 10:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
haha obviously no inflation is seen by the fed
Khanh Phuong
Khanh Phuong Apr 09, 2021 9:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inflation coming back strongly! The winter is coming
George Jetson
George Jetson Apr 09, 2021 9:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
damn..went to go eat last night. ordered a yuge seafood platter, fries, and other items for 140 dollars. dang it inflation . I demand justice.
Pablo Blanc
Pablo Blanc Apr 09, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Went to mcdonalds bought breakfest and paid 14$ for my meal. Inflation is already here
andy matalobos
andy matalobos Apr 09, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It depends how many items you purchased from the menu.
jeffrey CAMPBELL
jeffrey CAMPBELL Apr 09, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why are you eating garbage food?
Martino Razz
Martino Razz Apr 09, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they should be paying you to eat that garbage.
Tubsy SkinntFinger
TubsSkinnyFinger Apr 09, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Big mac in Australian dollars is over $7 and it is 2/3 the size, so essentially it is double the price it was 12 months ago.
Khanh Phuong
Khanh Phuong Apr 09, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Damn bad signal!
Steve Lora
Steve Lora Apr 09, 2021 8:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Unions and Biden Democrats will win Amazon. Counting will continue 3 more weeks. Many of the votes against unions are being put aside until they can determine if there was fraud. i stand with unions.
Richard Saunders
Richard Saunders Apr 09, 2021 7:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
GOLD💲💲💲
AIM Investor Journal
AIM Investor Journal Apr 09, 2021 7:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fitch have warned the US administration has yet to set out its full fiscal ambitions, which are expected to include another package of spending on infrastructure and the US could be downgraded without a plan to balance debt and spending “in the post-pandemic phase.”
AIM Investor Journal
AIM Investor Journal Apr 09, 2021 7:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The $1.9 trillion American Rescue Plan (ARP) will delay a return to a fiscal stance consistent with stabilization of the government debt ratio, says Fitch Ratings. Consequently, the prospect of debt stabilization is further away than when Fitch placed the US Sovereign Rating of ‘AAA’ on Negative Outlook in July 2020. General government debt will reach 127% of GDP in 2021.  At the time of the review of the US rating in July 2020 we said that the rating could be downgraded in the absence of a credible commitment to address medium-term public spending and debt challenges.  Our debt dynamics assume government debt is likely to exceed 130% of GDP and be on a gradual upward trajectory under relatively benign economic assumptions. Without a fiscal anchor fiscal policy may be more expansionary, leading debt to rise more rapidly.
Ronald Warren
Ronald Warren Apr 09, 2021 7:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Yuan gets stronger. The dollar weaker. China has better control of their debt. How long till they assume the role of "reserve currency"?
Brian Gulledge
Brian Gulledge Apr 09, 2021 6:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they will be saying the exact opposite monday.
SquadW Name
SquadW Apr 09, 2021 6:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation = Value stocks going UP UP UP
Norberto Balani
Norberto Balani Apr 09, 2021 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nice
Jacob Steinschlag
Jacob Steinschlag Apr 09, 2021 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the inflation is just starting
Cenk İdris İncirkuş
Cenk İdris İncirkuş Apr 09, 2021 6:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why do their pumping oil over than agreed limit I mean what is the motivation behind it because every oil producing countries seems to do the same, but why?
Jacob Steinschlag
Jacob Steinschlag Apr 09, 2021 6:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
greed.
Samantha Sa
Samantha Sa Apr 09, 2021 6:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Desperation
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email