020 7898 0500It was difficult to decide what to make of yesterday’s US economic data releases. Retail sales came in some way below expectations (they had been expected to grow by 0.2% but they actually shrank by 0.3%), but then the inflation report was released and the markets got a little rattled.
Inflation had been expected to come in at 2.9% but it actually came in much higher at 3.1%. This pointed towards the possibility of a Fed rate hike sooner rather than later which could have a negative bearing on the stock market. However, poor retail sales is at direct odds with higher inflation (as far as a rate hike is concerned), so your guess is as good as mine as to what will happen in the future.
Today we will see initial jobless claims up to 10 February 2018. They are expected to increase from 221,000 to 230,000. We will also see the industrial and manufacturing production figures.
