Stocks & Commodities Soar On CPI Report, Falling Yields & The Collapse Of The Dollar

US CPI reports comes in cooler then expected, sending stocks, bonds & commodities soaring. With US dollar rolling over on the news.

Major US stock indices saw gains over between 4-5% on Thursday CPI report, despite real wages falling for the 19th month in a row.

Friday saw China change its quarantine time from positive cases, which boosted commodities across the board with the Bloomberg index up 1.5% on the news.

With commodities rising again on a weakening dollar, I'm expecting inflation to move higher again in the medium to long term, undoing the falls seen in Y/Y CPI in US.

In addition historically, a FED pivot usually means stocks head lower not higher in the medium term. However markets are ignoring all of this as they head higher.

Inflation expectations in US saw another rise from consumers which Powell watches closely, meanwhile consumer confidence is looking terrible with new lows created in US property buying conditions. Once again US stocks are ignoring it all.

Meanwhile wholesale gasoline prices are on the rise in the US, which will lead to retail pump prices moving higher very soon & causing further price pressure on consumers.

Technical charts reviewed include:

SPX, DOW, NDX, DAX, XJO, Gold, Oil & DXY.

Links:

https://www.cnbc.com/world/?region=world

https://www.zerohedge.com/personal-finance/core-cpi-inches-lower-40-year-highs-real-wages-tumble-19th-straight-month

https://www.zerohedge.com/markets/cool-cpi-print-sparks-massive-dovish-repricing-rate-expectations-bonds-stocks-soar

https://www.zerohedge.com/commodities/commodities-soar-after-china-eases-quarantine-rules

https://www.zerohedge.com/markets/fed-pivot-will-be-no-cure-stock-marketss-ills

https://www.zerohedge.com/personal-finance/powells-favorite-sentiment-signal-shows-inflation-expectations-rising-confidence

https://www.zerohedge.com/commodities/oil-trades-above-90-china-reopening-optimism

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