Market in Review 1/11/2024

MARKET REPORT

Review:
– Headline CPI rose 0.3% in Dec
– 0.2% forecast, 0.1% prev in Nov
– Annual rate rose 3.4% Y/Y
– 3.2% forecast, prior 3.1%
likely see the Fed continue to push-back on market pricing for early rate cuts
– money markets still price a 65% probability of a 25bps rate reduction in March, down from around 70% pre-release
– Fed’s Goolsbee (nv) and Barkin (v) noting the data was in line with expected
– Fed’s Mester (v, retiring) stressed that it shows the Fed’s job is not done yet
– Iran seizes oil tanker, Crude higher
– UK to join US airstrikes on Houthi military positions
– Dollar ramped but gave back gains
– Gold sold back made back losses
– ETH notably higher again (although parred from highs)
– Equities Sold over data but recovered