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  • Hi, it's Jeff Kleintop with 90 seconds on what we're watching this week; and this

  • week it's all about inflation. On Thursday, we get the Consumer Price Index for the U.S.

  • Now, after big upside surprises in each of the last two months, economists are expecting

  • a rise of 0.4% in May, bringing the year-over-year change in inflation to 4.7%. That's the highest

  • pace - fastest pace - since the peak of the commodity super-cycle back in 2008. Fed officials

  • may be quiet this week per their blackout schedule ahead of next week's FOMC meeting

  • so instead investors may want to turn their attention to what China is doing. China is

  • pushing back on higher commodity prices through raising trading limits fees and margins on

  • commodity exchanges, in addition to other actions in an effort to reign in soaring inflation.

  • Commodities, from materials to agriculture, have pulled back sharply from multiyear highs

  • over the past month as this crackdown by the world's largest consumer of these commodities

  • began. But with commodity prices stabilizing in June we will be watching for any new policy

  • announcements from China that could impact the markets this week. In response to rising

  • inflation pressures, the European Central Bank could become the next central bank to

  • taper asset purchases, joining Canada and the Bank of England, with inflation hitting

  • its 2% target and the economic outlook improving since the March meeting. But despite the taper

  • talk and inflation interest, treasury yields continue to hold out near 1.6%. A slowdown

  • in the pace of job growth is offsetting longer term fears that the economy will overheat,

  • keeping the bond market from throwing a tantrum. Thanks for watching.

Hi, it's Jeff Kleintop with 90 seconds on what we're watching this week; and this

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B1 US inflation commodity pace week outlook central bank

Weekly Market Outlook | June 7, 2021

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    洪子雯 posted on 2021/06/08
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