US inflation expectations jump on rising energy prices! | MarketTalk: What’s up today? | Swissquote

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Despite the softer-than-expected inflation data released earlier last week, US inflation expectations shocked investors at last Friday’s release; the 1-year expectation jumped from 3.6% to 4.6% due to the surprise surge in energy prices. The expectation was a further easing to 3.5%.
And energy bulls remain in charge of the market, as besides the tighter OPEC supply, the US Energy Secretary Jennifer Granholm said that the US could begin buying oil to refill the strategic reserves and the EIA warned that the global oil demand will rise by 2mbpd to almost 102mbpd. Both helped keeping the price of American crude at around its 200-DMA, a touch below the $83pb level.
Therefore, despite the easing inflation pressures on the CPI figures, the positive pressure building on energy prices and the surging inflation expectations boost the Federal Reserve (Fed) hawks. Combined to waning bank stress, the US 2-year yield rose last week.
In the FX, the US dollar index tested the lowest ytd levels, and formed a triple bottom near the 100.75/100.80 range.
The major peers continue benefiting from a softer dollar to consolidate gains, as gold trades a few dollars below its all-time-high levels.
In equities, the S&P500 was boosted by stronger-than-expected earnings from big US banks.
Earnings expectations for this quarter are not brilliant. The S&P500 earnings are expected to fall around 6% in Q1 this year compared to the Q1 of 2022.
Besides the big bank earnings, Netflix, Tesla, TSM, Johnson and Johnson and P&G will be among companies that will walk into the earnings confessional this week.
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