Datatrack - Blog

2026-02-04

Japan's December Services PMI Jumps to 53.7, Strong Year-End Rebound Ties Annual High

Core Overview: Strong Finish, Matching Early-Year High Japan's December Markit Services PMI recorded 53.7, significantly outperforming the previous reading of 51.6, with a single-month increase of 2.1 points. This data not only confirms the expansion trend for the 12th consecutive month (above the 50 boom-bust line) but also matches the high point of January 2025, indicating that after a brief pullback in November, Japan's service sector regained strong growth momentum at the end of the year, laying a solid foundation for the start of the 2026 economy. Key Details: Tourism Dividends and Wage Transmission The two main engines for this month's data rebound came from inbound tourism and holiday consumption. Data from JTB and the Japan National Tourism Organization (JNTO) show that the number of foreign visitors to Japan in 2025 is estimated to surpass the 40 million mark, with December benefiting from the ski season and year-end holidays, leading to an explosion in demand for accommodation and dining. Additionally, the 5% level wage increase brought by the 2025 "Shunto" (Spring Wage Offensive) further supported the foundation of domestic consumption at the end of the year, offsetting some of the pressure on real purchasing power caused by inflation. In-Depth Attribution: Demand Resilience Amidst Price Hikes Analysis indicates that although companies continue to face challenges from labor shortages and rising input costs, the service sector successfully passed costs on to consumers without seeing a significant cooling in demand. Institutions such as Dai-ichi Life Research observed that as real wages turned positive in the second half of 2025, the household sector's tolerance for rising service prices increased. Furthermore, while the yen exchange rate has fluctuated, the relatively weak pattern continues to attract overseas tourists, serving as a strong support for service exports. Outlook and Risks: Labor Force Becomes the Biggest Bottleneck Short-term (1-2 months): As the Lunar New Year holiday approaches, tourism-related service industries are expected to remain at high levels in January-February 2026, with the PMI likely to maintain within the expansion range of 52-54. Medium-term (3-6 months): Attention must be paid to the possibility of further rate hikes by the Bank of Japan (BOJ) and their impact on mortgages and consumer psychology. Meanwhile, labor shortages have become a structural constraint; if companies cannot solve the labor shortage through automation or wage increases, capacity limitations may suppress the magnitude of future growth. Web Search References https://www.jtbcorp.jp/en/newsroom/2025/01/09_jtb_2025-annual-outlook_en.html https://arigatotravel.com/travel-news/arigato-travels-8-top-travel-trends-for-japan-in-2025/ https://www.dlri.co.jp/en/report/macro/369796.html

By AI Insights

2026-02-04

US December ISM Manufacturing PMI Surges to 52.6, Hitting 3.5-Year High in Strong Expansion

According to the latest DataTrack data, the US December ISM Manufacturing Purchasing Managers' Index (PMI) was reported at 52.6, marking a significant rebound from last month's 47.9. This not only ended a trend of contraction over consecutive months but also set a new high in over three years. This figure far exceeded the general market expectation of 48.2, showing that the speed of recovery in manufacturing activity has surpassed expectations, injecting a boost into the economic outlook for early 2026. Observing detailed sub-indices, the primary driver came from a strong recovery on the demand side. According to market information, the New Orders index surged to 57.1, and the Production index also rose synchronously to 55.9, indicating that warming terminal demand is prompting manufacturers to accelerate production. In addition, improvements in the Supplier Deliveries index and inventory data reflect that the supply chain is shifting from a destocking phase to an early expansion phase of restocking. Regarding the dramatic improvement in this data, analysts generally believe that "inventory restocking" and "policy expectations" are the dual drivers. Some institutions pointed out that as holiday sales at the end of 2025 were better than expected, retailers and manufacturers began to restock inventory; meanwhile, companies may be front-loading goods to avoid future potential tariff policy risks, leading to a surge in short-term orders. While this type of "rush order effect" pushed up the monthly data, its sustainability needs to be observed. Looking ahead, manufacturing momentum is expected to continue in the short term (1-2 months), but attention must be paid to whether the input Prices index rises synchronously (e.g., touching 59.0), which could reignite inflation concerns and subsequently affect the Federal Reserve's interest rate cut path. In the medium term (3-6 months), if New Orders can maintain a high level above 55, it would confirm that the manufacturing sector has entered a substantive expansion cycle, which would form strong support for the US dollar and cyclical stocks. Online Search References: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF0Jy2AREoL6EUq-4McAFM5M0Itsc8BIY2Rad-b8bdijWvp9LvUOJMVRNFkgQ3iySNtAZpp4hQX3UC6rwmkByr6eqBf7SlEnKaXYVhsQfeMfIAkVT2tYH-1srgXqOtHygBOvx_o90_GPv0mH1jTasz15-9EncT9elWCEUqwA9dCnS1rGuHl92rFHQJr https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEiXo23-rtAAyBPPIiRoTUd6aSgitB8e9XXo8q8XZeLPjRq_TbgH6MQYZ1Ij5g0d2NgkDau8xgQH_y8Ekcz4fAKK_EcbmVhFlGA4OflF43N7B_XLj11zYKrvEViPeibb2Q https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFYGktFw-RN3ekBhKfu-C4rw27kQuyBfHPysmKWsNzdg23mfjl65PPt9-l1DYKRB9uKbmK9eif97YgLEwkbZealsXACJFDy9Ov2uQiKOehwUu5sHiQYvBq7_qp7hlMqsUbeug8ovYsp0od6KLFwLk9jpYfvIIXOCgvHnqpBS4TvHwe9vGCLu-ziSngSAQowrjsxu4_m7ZloGHI5Dutg_QymCNQ0pjOL-uxLx96y8vZxEMpWvZEPLA==

By AI Insights

2026-02-04

Caixin PMI Rises to 50.3 Extending Expansion; Recovery in Domestic Demand Offsets Tariff Headwinds

Latest data published by Caixin Media shows that the China General Manufacturing Purchasing Managers' Index (PMI) recorded 50.3 in December 2025, an increase of 0.2 percentage points from 50.1 in November. This not only extends the rebound trend following a brief contraction in October but also marks a new high for the past three months. This data indicates that despite a challenging external environment, China's manufacturing sector maintained a trend of moderate expansion at the end of 2025, suggesting that the previous combination of policy measures is gradually transmitting to the real economy, assisting enterprises in withstanding external shocks. Observing key sub-indices, although official data did not release specific numerical values for the sub-items, market signs indicate that the "New Orders" and "Output" indices were likely the main forces supporting this rebound. According to recent industry research, benefiting from the peak domestic consumption season and the continuation of "trade-in" policies, domestic demand orders have warmed up. However, the "Employment" sub-index is expected to remain in contraction territory, reflecting that enterprises, under profit margin pressure, remain cautious about expanding headcount. Furthermore, affected by the Red Sea crisis and supply chain restructuring, suppliers' delivery times may have lengthened slightly. In an in-depth attribution analysis, the resilience of the manufacturing sector's business climate primarily stems from the effect of "internal and external hedging." According to analyses by institutions such as MERICS and Interact Analysis, although the new round of US tariffs (the Trump 2.0 effect) led to a significant decline in exports to the US in the fourth quarter of 2025, China's exports to ASEAN, Europe, and Africa reached new highs, effectively filling the gap. Meanwhile, Bloomberg pointed out that the fiscal stimulus signals released by Chinese policymakers at the end of the year successfully stabilized market confidence, preventing the manufacturing sector from stalling due to external demand volatility. Looking ahead, in the short term (1-2 months), affected by the Lunar New Year holiday effect, factory shutdowns may cause seasonal fluctuations in the data for January and February. Moreover, the specific enforcement intensity of tariffs after the new Trump administration takes office will be the biggest risk point. In the medium term (3-6 months), as 2026 formally marks the opening year of the "15th Five-Year Plan," the policy focus will shift from simple scale expansion to "capacity upgrading" and "technological self-reliance." High-tech manufacturing is expected to become the engine for the new round of growth, but traditional manufacturing will still need to face the challenges of destocking and profit compression. Relevant Web Search References: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGLkuZ9dP7sEL2jWphfLDF7Ae3AEWB7O7nTKIpgYxYV78WB9o3o3rBSW16sBKw6Mu72qTTyj3BAJfVDlqHC3xeMJDoO3WgZnHRs0yycW1zAkfRQCQbFYZ21LGelG-KY5i_3-k3VwVc7vYfljek= https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGM48x1uUcF-hXbMIZ-SJUVG-W8uygDqSH1D7Zbyx4oyNdFo28EdLlwww4AhWIb34Px_lRu8VqUPQXJkyY_5H6RRvDT2EwtrUaiOyAzZVyQSZhFCXJsZE3TVhHeBur-nGgjNBWsAA1ChtNP-99eM5azGx3sJ0t8cDtHwb8X4CEqBoY= https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFMqZiZV2OZ3MFW4aorig1VCNxuaAW1cKUSmBtyIsGz263Bac7BuxPSrSvGg2zw4UN2mlWSiynWrxiJJ7pPlNabOyb2KD5DySu0PrSWiNl4WqXel7iKPHs16xrKjCQGzf2TjVABPTzM18LH51Vx3yagcsQjWaRk4afYFcv47LquF4rD3r1t4VcbDae1I2_fz1EntoQuT3yGP4tyux-Xnjlrleipmxtf

By AI Insights

2026-02-04

Bank of Japan Maintains 0.75% Rate to Start the Year, Awaiting Shunto for Next Steps

Core Overview: On January 22, 2026, the Bank of Japan (BOJ) announced it would maintain the benchmark interest rate at 0.75%, in line with market consensus. This decision follows closely on the heels of the rate hike action in December 2025 (raised from 0.5% to 0.75%), indicating that policymakers prefer to adopt a wait-and-see attitude after consecutive actions to assess the lagging impact of monetary tightening on the real economy and exchange rates. Key Details: The key to "standing pat" this time lies in confirming inflation stickiness and domestic demand momentum. Although the nominal interest rate has reached 0.75%, considering that core CPI remains above the 2% target, real interest rates remain in the accommodative range. Additionally, the yen exchange rate stabilized slightly after the rate hike, alleviating imported inflation pressure and giving the central bank more time to examine data on corporate capital expenditure and household consumption. Deep Attribution: Regarding the future path, major investment banks generally view this as a "hawkish pause." Goldman Sachs points out that the central bank is waiting for the results of the 2026 Shunto wage negotiations to confirm whether the "wage-inflation" spiral is sustainable; Bloomberg Economics also analyzes that if large enterprises can maintain the high level of wage hikes seen last year, it will clear obstacles for the central bank to further normalize policy. Outlook and Risks: Looking at the short term (1-2 months), due to a lack of major data catalysts, interest rates are expected to remain at the status quo in February. Medium-term (3-6 months) risks are concentrated on the Shunto results and the extent of the global economic slowdown; if April wage data is strong and external demand does not collapse, the market widely expects the central bank to push interest rates to 1.0% at the end of Q2 or early Q3, gradually moving towards a neutral interest rate level. Online Search References: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG32gQkJ1r7t3pjy1L0jgy7s5YOF4m56E28cvS08cdfJuAmWPXgkchkkm_tILH_7-aUz5p31Zz9gdlfkBNNYZX9VBIYigQD6LaqLStK_nZ1EtMSnOXdFOsS0OXKTZrFAI-p-EwRw9kUeHHuh0fdJatrSOq3U77hGZqpse2eIdtKFgc6Cil7GXcpBAyX08WieutM3aZpG1QE6mXQDOX0CYXCDT6kgLvQooYgoeVKNzL5lzLb https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFyn18cksTV-KwvmBsB4UjX4WFyI8s9RhvMjZe0V8X--D-LDlyalrAtW-DqV_cL87QlA70H5iqVgVT2xj0nhNj7N1UfqdQ7Sg54litqNCDztWA3XpeDguaL1BicWA6xtj5tpdFC6cQUCSjmBfqm6_h4Dvn6TN0oLqOdM8dyUjQPfVSul01Pg55OU4EMHKHKXvJRIvxsMyoH0Mn95A==

By AI Insights

2026-02-04

China's 1-Year LPR Holds Steady at 3.0% for Eight Consecutive Months, Ending 2025 at a Historic Low

According to the latest data, China's one-year Loan Prime Rate (LPR 1Y) for December 2025 was reported at 3.0%, unchanged from the previous month. This marks the eighth consecutive month the rate has remained at this level since being lowered from 3.1% to 3.0% in April 2025. Looking back at the full year of 2025, the LPR demonstrated a trend of a "slight decline in the first half and stability in the second half," reflecting that monetary policy has entered an observation period following the easing earlier in the year. The current 3.0% level is at a historic low, indicating that while officials are dedicated to lowering financing costs for the real economy, they have also begun to weigh the resilience of the banking system. Detailed data shows that the LPR 1Y was at the 3.1% level at the end of the first quarter of 2025, subsequently lowered by 10 basis points (bps) to 3.0% in April, and then remained flat until the end of the year. Meanwhile, the 5-year LPR, which serves as the anchor for mortgage pricing, also mostly remained stable during the same period (based on external market information, it usually moves in tandem with the 1-year rate or undergoes asymmetric adjustments). This eight-month-long "silent period" contrasts with the more frequent adjustments seen in 2024, implying that the policy focus may have shifted from simple "price reductions" to "structural optimization," such as supporting specific industries through re-lending tools. Market analysis points out that the central bank's decision to stand pat in the second half of the year was mainly constrained by pressure on banks' "Net Interest Margins (NIM)." According to observations from institutions like Capital Economics, excessively compressing loan rates could damage banks' profits and capital replenishment capabilities, thereby affecting the sustainability of credit extension. Furthermore, analysis from Ultima Markets also mentioned that against the backdrop of an unclear U.S. Federal Reserve (Fed) rate cut path and global trade situation (such as tariff concerns), China's central bank tends to reserve policy ammunition to avoid exhausting the room for rate cuts too early. Looking ahead to 2026, the probability of a significant LPR adjustment in the short term (1-2 months) is low. Forecast data from Investing.com shows that the market generally expects the LPR to continue hovering around 3.0% in early 2026. However, in the medium term (3-6 months), if the recovery of domestic demand falls short of expectations or the real estate market remains sluggish, it cannot be ruled out that the central bank will use a "Reserve Requirement Ratio (RRR) Cut" to release long-term liquidity, thereby guiding the LPR slightly downward. Regarding structural risks, attention must be paid to whether deflationary pressure forces the Real Interest Rate to rise passively, as this would be a key catalyst for triggering the next round of rate cuts. Relevant Reference Sources: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHDPgkOpjkePgQR5l6X3F_uVfnrgnDcoTymWB27UUFe4tYaK-02sq5QkJC49QhxCUGpOcZU4hJ9tJ1ICW0fBc9XFyuguh8tI0vKwkfGCVCuQHxbdXuB06K3oZqBvCY247AWbPQFgdOBTgfF6V-_NoxTYxIhFkuAFX0JwBENmnYpCjpr1B59rF4mH1qFAq5FzN1_SfJsPG6W4rp6q8I= https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQE2zP005BlnDBs8pDyO8bX6-6FBCXp3v3AXyJw6b_HrB36o7SXwykdzLBh9aScqzIw5WGQwVGdGhoS1ZWe7nsimmlyLmB1JeIrDzgQ0_TUTrqneEKmNM5TXMlLEAN-qbmDlpRUQAJ6G0SrCMA== https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEfDW-LrC9_KF38tSyjhAGjk3mSgxFXY8xyw8-izWSXRFwcdvTyEE5QiN41N-Klf5vQMXXPqnb1Xbx1eMANVGmb5z9MoJlir7Ay6y0VdhzkPFqxhsW0M4wlCV3t7BYouBeTGHhO-KeBogtP1WnBmPEEDDJXPQgddCm2HQEeHSqYnAMSj0rHF_MQsqnGWgiI-3TzCCGKzVM_GS2wb8c=

By AI Insights

2026-02-04

December Consumer Confidence Plunges to 84.5, Setting New Annual Low; Expectations Index Deep in Recession Warning Zone

According to the latest data released by The Conference Board, the US December Consumer Confidence Index (CCI) slipped to 84.5, down 4.6 points from the previous value of 89.1, marking the lowest level within 2025. This figure is already below the previous low in March (86.0) and significantly lower than the peak at the end of 2024 (104.1), showing a weak trend of fluctuating decline in consumer confidence throughout the year. The sharp deterioration in the data this time mainly reflects the collapse of household confidence in both current economic conditions and future prospects, with overall sentiment approaching the trough seen during the 2020 pandemic. Observing the performance of key sub-indices, the current reading of 84.5 hides extremely weak structural concerns. According to market analysis of the data breakdown, the "Present Situation Index," which reflects views on the current economy, has significantly retreated, while the more forward-looking "Expectations Index" has shown a crashing trend, with values far below the "80 Recession Signal" derived from historical experience. This implies that consumers are not only anxious about the current job market but also hold extremely negative views regarding income and the business environment for the next six months; this collapse in "expectations" is typically a precursor to a contraction in real spending. Regarding the main reasons for the plunge in confidence, analysts from major institutions point out that while inflationary pressure shows signs of easing, absolute price levels remain high. Coupled with the increasingly obvious perception that the labor market is shifting from "overheated" to "cooling," these serve as a double blow to confidence. Some market commentaries also mention that recent uncertainty regarding tariff policies and disturbances in domestic and international political situations have further deepened public insecurity. The Chief Economist at The Conference Board has warned that when the Expectations Index remains depressed for a long period, it usually indicates that the risk of a future economic recession is rising sharply. Looking ahead, it is difficult to see a V-shaped reversal in consumer confidence in the short term (1-2 months). As financial pressures emerge after the year-end shopping season and corporate hiring turns conservative, consumption momentum in the first quarter may face severe tests. In the medium term (3-6 months), if the Expectations Index cannot recover above 80 quickly, the probability of the US economy falling into a technical recession will increase significantly. Investors need to closely monitor upcoming non-farm payroll data and retail sales figures to determine whether the collapse in confidence has translated into a hard landing for the real economy. Related online search reference sources: https://www.conference-board.org/ https://www.economictimes.com/ https://www.investopedia.com/

By AI Insights

2026-02-04

China's Dec Manufacturing PMI Falls to 49.3%, Expansion Proves Short-Lived as Activity Returns to Contraction

According to the latest data from the National Bureau of Statistics, China's manufacturing Purchasing Managers' Index (PMI) for December retreated to 49.3%, a decline of 0.8 percentage points from last month's expansionary figure of 50.1%. This correction not only erased the brief gains seen in November but also highlights that the manufacturing sector still faces significant downward pressure as of the end of 2025, with the foundation for recovery not yet solid. Detailed data indicates that weakness on the demand side was the main drag. While November benefited from seasonal rush orders and policy effects, the new orders index turned downward in December, returning to contraction territory. Meanwhile, although the production index maintained relative resilience, signs of slowing growth have emerged. The widening gap between supply and demand reflects that enterprises remain cautious regarding inventory destocking and order visibility. Market analysis suggests the primary cause for this decline is the persisting structural contradiction of "insufficient effective demand." Economists from institutions such as Pinpoint Asset Management generally believe that while exports have played a supporting role over the past year, adjustments in the real estate market and the restoration of domestic consumer confidence still require time. This has resulted in manufacturing sentiment exhibiting "pulse-like" volatility rather than a trend-based recovery. Looking ahead, short-term factory activity in January and February is expected to be impacted by seasonal shutdowns and workers returning home due to the upcoming Lunar New Year. Data volatility may intensify further, and the PMI is likely to continue hovering at low levels. In the medium to long term, market focus will center on whether stronger fiscal stimulus measures will be unveiled around the "Two Sessions" next March to hedge against weak domestic demand and stabilize manufacturing investment confidence. Related References: https://tradingeconomics.com/china/manufacturing-pmi https://www.stats.gov.cn/english/PressRelease/202601/t20260101_1958632.html https://www.scmp.com/economy/economic-indicators/article/3290680/chinas-factory-activity-breaks-8-month-contraction-headwinds-persist

By AI Insights

2026-02-04

30-Year Mortgage Rate Steady at 6.1% as Government's $200 Billion Bond Purchase Plan Counters Fed's Pause on Rate Cuts

According to the latest DataTrack data, as of January 28, 2026, the US 30-year fixed mortgage rate stands at 6.1%, a slight rise from the previous week's 6.09%, yet still close to the swing low of 6.06% set in mid-January. Reviewing the past year, rates have trended downward from a high near 7% in early 2025, reflecting cooling inflation and market expectations for easing policies. However, entering early 2026, the rate trend presents a consolidation pattern with a "capped ceiling and supported floor," indicating the market is digesting extreme policy signals characterized by a mix of bullish and bearish factors. Detailed data reveals a rare "counteracting" situation between two core factors influencing rates. On one hand, the Federal Reserve (Fed) decided to "stand pat" during its January 28 meeting, maintaining the federal funds rate in the 3.50% - 3.75% range, citing that December inflation remained at 2.7%, slightly above target. This would normally push market rates higher. However, the government recently issued an executive order requiring Fannie Mae and Freddie Mac to purchase approximately $200 billion in mortgage-backed securities (MBS). This move artificially injected liquidity into the mortgage market, effectively suppressing the potential rate rebound caused by the Fed's pause on rate cuts and forcibly anchoring the 30-year rate near 6.1%. Regarding the market direction following this wave of artificial intervention, Wall Street institutions hold divided views. Fannie Mae predicts that rates will further decline to 5.9% by the end of 2026, believing the government's liquidity support will continue to have an effect. Conversely, the Mortgage Bankers Association (MBA) holds a conservative attitude, estimating that year-end rates will rebound to 6.4%, arguing that long-term bond yields will eventually reflect inflation stickiness. Bankrate analysts stated even more directly that unless the Fed cooperates by restarting rate cuts in the future, the rate-suppression effect brought about solely by MBS purchases may be "temporary and limited." Looking at the short term (1-2 months), as the spring homebuying season arrives, the government's MBS purchase plan will serve as the main support for market confidence; rates are expected to consolidate narrowly within the 6.0% - 6.2% range, and homebuyers can utilize this "policy bonus period" to lock in rates. For the medium term (3-6 months), if core inflation data fails to fall below 2.5% forcing the Fed to maintain high rates for longer, the artificially suppressed mortgage spread may widen, and attention should be paid to the risk of rates retracing to 6.4%. Online Search References: https://www.forbes.com/advisor/mortgages/mortgage-rates-forecast/ https://www.bankrate.com/mortgages/mortgage-rates/ https://www.freddiemac.com/pmms

By AI Insights

2026-02-04

US November PPI Annual Growth Rate Flat at 3.0%, Stubborn Inflation Supports High Interest Rate Expectations

According to the latest DataTrack data, the annual growth rate of the US Final Demand Producer Price Index (PPI) for November 2025 was reported at 3.0%, flat compared to the October figure. After touching a low of 2.4% in May of this year, inflation data in the second half of the year has shown a trend of gradually creeping up and forming a base near 3%. This indicates that despite the continued operation of restrictive interest rates, price pressures on the production side remain sticky, and progress in inflation receding to the 2% target has stalled. Observing detailed performance, service sector inflation remains the primary driver supporting the PPI, particularly price fluctuations in transportation, warehousing, and trade services. Meanwhile, the goods sector's contribution to lifting the overall index was relatively limited due to range-bound energy prices; however, core PPI (excluding food and energy) data shows that supply chain cost pass-through persists, and manufacturers' pricing power has not yet fully weakened. Addressing this wave of inflation stickiness, market institutions analyze that the current stubborn performance of the PPI stems from support by labor costs and preventive pricing by businesses regarding future policy uncertainties. Some views suggest that while risks of imported inflation are under control as supply chains gradually adapt to the new global trade environment, the resilience of domestic service demand makes it difficult for prices to fall quickly, compelling the Federal Reserve to remain patient in policy adjustments. Looking ahead, in the short term (1-2 months), the PPI annual growth rate is expected to fluctuate at high levels within the 2.8% to 3.2% range, with seasonal demand before year-end potentially further supporting prices. In the medium term (3-6 months), close attention must be paid to the impact of geopolitics on energy prices and the results of new year wage negotiations. If core inflation persists above 2.5%, the Federal Reserve may be forced to delay the timeline for rate cuts, and the market needs to be vigilant about the risk of interest rates remaining higher for longer. Web search reference sources: https://www.bls.gov/ppi/ https://tradingeconomics.com/united-states/producer-prices https://www.investing.com/economic-calendar/ppi-734

By AI Insights