US CPI is the main event today, core inflation is expected to have dropped slightly in February, to 3.7% from 3.9% in January, while headline inflation is expected to have remained stable at 3.1%. At the start of the year price increases temporarily boosted prices in labour-reliant services categories, though this January effect is likely now behind us, thus many expect a return to the previous inflation trend, specifically for medical care, personal care, car repair, and day care services. It's not expected that this CPI reading will provide clear enough evidence of disinflation to boost the Fed's to cut rates, however, they may accrue enough confidence by May, one survey showed the vast majority of investors expect the market's reaction to the CPI data will be "risk-off".
Shares in Xiaomi listed in Hong Kong have jumped 10.5% today following news of the launch date of the Chinese smartphone giant’s first electric vehicle, sales are due to start on 28th March. The company had pledged to invest $10bn in its car business over a decade and hopes its first model can compete with Porsche and Tesla. China’s EV market is currently undergoing a period of intense competition.
Iron Ore has dropped 7%, below the $110 a ton mark yesterday as China's real estate and manufacturing activity remains under pressure. Stockpiles at ports have grown to the highest levels in a year, leaving the market with growing inventories, prices have steadied slightly this morning. The Yen fell for the first time in six days after BoJ governor, Kazuo Ueda, pointed out weakness in some nondurable goods whilst also indicating the Bank remains on track to end it's negative interest rate policy, Japan's 10Y bond climbed to the highest level in three months.
Elsewhere, oil edged higher slightly while bitcoin held just above the $72k mark. And despite the depressed IPO market, Reddit are targeting a listing that could value the company at as much as $6.4bn. This is below the $10bn valuation reached in its last private valuation in 2021. If all goes ahead as planned, the loss-making company could raise as much as $519mn.
**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
