U.S. stock index futures were unchanged early this morning, a day after the S&P 500 ended at an all-time high and ahead of Federal Reserve Chair Janet Yellen's take on the economy that investors will peruse for clues on the timing of a rate hike. Then the U.S. Financials posted at 8:30 am sends the U.S. futures falling like a rock and the US dollar rises significantly.
Markets expected to open lower.
Here is the current market situation from CNN Money
European markets are mixed. The FTSE 100 is higher by 0.54%, while the DAX is leading the CAC 40 lower. They are down 0.31% and 0.07% respectively.
The market appears to have chosen the hotter-than-expected Core CPI print (as opposed to weakest headline CPI YoY print since Oct 2009 of -0.2%) as key. Core CPI rose 0.3% MoM in April - the most since March 2006; and 1.8% YoY - the most since Jan 2013. The biggest driver of the surge in consumer prices is medical care costs - which rose 0.7% - the biggest increase since January 2007 (thanks Obamacare).
Overall CPI is the lowest since Oct 2009...
But Core CPI is surging...
The Core CPI breakdown...
The index for all items less food and energy increased 0.3 percent in April, its largest increase since January 2013. The shelter index increased 0.3 percent, the same increase as in March. The indexes for rent, owners' equivalent rent, and lodging away from home all rose 0.3 percent. The medical care index rose 0.7 percent, its ...
According to the BLS, the Consumer Price Index (CPI-U) year-over-year inflation rate continues in deflation. The year-over-year core inflation (excludes energy and food) rate was unchanged at 1.8%, and continues to be under the targets set by the Federal Reserve.
WASHINGTON (Reuters) - U.S. consumer prices moderated in April on weak gasoline prices, but rising shelter and medical care costs boosted underlying inflation pressures, which should keep the Federal Reserve on course to raise interest rates later this year.
Yesterday, in the aftermath of the latest settlement by the world's biggest banks, who finally admitted they have criminally rigged virtually all markets since the Great Financial Crisis (and prior) despite promising repeatedly they would not do that after having been caught time and again and punished with ever "harsher" wristslaps, we wrote that the "Public Is Confused Why World's Biggest Banks Admitting Criminal Fraud, Leads To Public Yawns."
It appears the public is not the only one who is confused, or yawning, that yet again banks get away with just another penalty (to be paid by their shareholders) and zero jail time for the perpetrators despite what is supposedly "criminal" rigging: none other than a SEC regulator working for the same enforcer who "punished" the Too Big To Prosecute banks only to immediately grant them waivers to continue business as usual, is just as confused.
Here, two weeks after SEC commissioner Cara Stein raged that the SEC would turn a blind eye to Germany's Deutsche Bank for a "Decade Of Lying, Cheating, And Stealing", is her dissenting opinion with the SEC settlement, this time broadening her anger to include all the banks, not just the German one.
* * *
Dissenting Statement Regarding Certain Waivers Granted by the Commission for Certain Entities Pleading Guilty to Criminal Charges Involving Manipulation of Foreign Exchange Rates
ATHENS (Reuters) - Greece expects to reach a cash-for-reforms deal with its creditors in the next 10 days and aims to meet all its payments in June, the government's spokesman said on Friday, after the prime minister met with EU leaders.
SINTRA, Portugal (Reuters) - The president of the European Central Bank called on euro zone countries to reform their economies, warning that future growth, in the face of entrenched unemployment and low investment, will be modest.
We were warning in several previous articles (here & here) the Greeks didn't have much time left to enter into a new funding agreement with its lenders as the country was facing several billions of euros in mandatory repayments over the next few weeks.
Meanwhile, the International Monetary Fund has estimated Greece has until June 5th before it runs out of any money, so the leaders of Greece, the EU and the Eurozone have two more weeks to make the final tranche of 7.2B EUR of emergency funding available, or the consequences might be disastrous.
The negotiations to make the 7B+ EUR available have been ongoing for several weeks, if not months, and the parties involved in the negotiations haven't even come close to reaching a deal. Athens was already running on fumes and directed its public institutions to send their cash back to the central government to meet some shorter term payment obligations. On top of that, the government is mulling over instating a transaction tax on cash withdrawals and wire transfers, and several sources indicate this will happen i ...
NEW YORK (Reuters) - As the United States raced over the past five years toward becoming a global petroleum powerhouse, the world's biggest oil exporter Saudi Arabia quietly seized a market milestone from America: the largest source of peak summer demand.
TOKYO (Reuters) - Mazda Motor Corp and Mitsubishi Motors Corp said on Friday they would recall about 624,000 more vehicles to replace air bag inflators made by Japan's Takata Corp , following similar moves last week by domestic automakers.
FRANKFURT (Reuters) - Random checks of pilots' psychological fitness could help reduce risks in the aviation sector, Lufthansa Chief Executive Carsten Spohr said in his first newspaper interview since the crash of a Germanwings plane in March.
SINGAPORE (Reuters) - China is likely to hold a 25-30 percent stake in the new Asian Infrastructure Investment Bank (AIIB) while India will be the second-biggest shareholder, delegates said on Friday after a three-day meeting of the bank's founding member-nations.
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