Funds invested in consumer goods companies like P&G , Unilever and Nestle reckon these firms should now start easing price increases as supply chain costs decline - or risk damaging market share and margin growth.
Elsewhere, the first quarter U.S. corporate earnings season remains a mixed bag, with banks seemingly weathering the March storm - but signs of margin pressure were evident in manufacturers such as Tesla.
Tesla shares dropped 2% after the electric-vehicle
maker's sixth U.S. price cut this year.
In another bright spot on the inflation front, German data
showed producer prices rose less than expected in March, posting
the smallest year-on-year increase since June 2021.
Overall, Wall St futures were slightly lower on Thursday
along with most other world bourses - with implied volatility
levels ebbing to their lowest since 2021.
Helped by the oil price retreat, 2-year U.S. Treasury yields
fell back almost 10 basis points to 4.19%.
The U.S. government debt ceiling standoff was also in focus
as the latest tax revenue data suggested the date the government
may run out of funds will be sooner than previously thought.
Republican U.S. House Speaker Kevin McCarthy on Wednesday
unveiled a plan to raise the debt ceiling by $1.5 trillion and
cut federal spending by three times that amount, laying out an
opening position in what is likely to be a tense partisan debate
over government borrowing.
Events to watch out for on Thursday:
* U.S. corporate earnings: American Express, Blackstone, Fifth
Third Bancorp, AT&T, Union Pacific, CSX, Truist, Seagate
Technology, WR Berkley, Marsh & McLennan, Nucor, Philip Morris,
Comerica, Huntington Bancshares
* U.S. April Philadelphia Fed business survey, weekly jobless
claims, March existing home sales and leading indicator.
European Central Bank meeting minutes
* U.S. Federal Reserve Board governor Chris Waller, Fed board
governor Michelle Bowman, Dallas Fed chief Lorrie Logan,
Cleveland Fed chief Loretta Mester, Philadelphia Fed chief
Patrick Harker and Atlanta Fed chief Raphael Bostic all speak;
ECB President Christine Lagarde, ECB board member Isabel
Schnabel, Bank of Italy chief Ignazio Visco, Bank of Spain head
Pablo Hernández de Cos speak; Bank of Canada chief Tiff Macklem
speaks; Bank of England policymaker Silvana Tenreyo speaks
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Commodity Price Deflation? VIX and bear markets Tesla Earnings Japan's exports and imports rise Top 10 most populated countries by mid-2023 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(By Mike Dolan, mike.dolan@thomsonreuters.com. Twitter:
@reutersMikeD)
