Equities continued their march higher today, with the S&P 500 trading at its highest levels in three weeks. The move higher happened despite a big beat in US PPI data yesterday, which showed that inflation is still stubbornly high.
The other market that did well today was Asia-Pacific equities, which got a boost from news that China’s sovereign wealth fund added exposure to China’s biggest banks. This was very similar to 2015 attempts to prop up the stock market and is yet another attempt by China to improve sentiment.
With the positive risk mood as well as the recent dovish Fed commentary, the USD and Treasury yields were trading close to recent lows as markets wait for today’s US CPI data.

Key takeaways:

  • Equities continued their march higher today, despite hot PPI data yesterday.
  • The USD and Treasury yields were trading close to recent lows.
  • The US CPI data is the most important economic data release this week.

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