Producer Prices Continue Expanding In-line With Expectations

  • PPI surged by 0.2% month-on-month, inline with estimates.
  • On a year-on-year basis, PPI increased by 2.4%, beating estimates of 2.3%
  • Core PPI came in at 0.3% month-on-month and 3.1% year-on-year.
  • Overall, service costs rose 0.3%, food price fell by 0.2% while energy prices fell by 0.3%. Markets remain muted. The US Dollar remains steady.

Jobless Claims Surprise On the Downside

  • Jobless claims for the week came in at 217k, much lower than the expected 224k.
  • The strength in the labor market may influence Fed's ability to remain dovish.
  • Currently, market-implied probability for a rate cut in december remains above 75%.

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