Free Trade Ideas

Welcome to Friday's trade! Today's Producer Price Index (PPI) report offered markets some relief, but don't mistake it for an inflation victory.
October wholesale prices rose 0.3% month over month, below expectations of 0.4% and sharply lower than September's revised 1.4% surge. That's the good news. The bad? Annual producer inflation accelerated to 6.5%, its highest level since November 2022. Core PPI, excluding food and energy, increased 0.3% monthly and remained elevated at 5.0% annually.
Under the hood, goods prices climbed 0.5%, with food jumping 1.3%. Services increased 0.2%, while transportation and warehousing costs surged 2.0%. Clearly, inflationary pressures remain widespread.
So, what does this mean for traders?
Initially, the softer headline supported US equities and eased Treasury yields. However, the early optimism faded as stocks reversed lower. Following Tuesday's hotter-than-expected CPI report, the Federal Reserve remains under pressure to tighten monetary policy. Another December rate hike is firmly in the conversation, keeping the USD, gold, and equities sensitive to incoming data.
Next week promises plenty of action!
Tuesday brings US Retail Sales and NVIDIA (NVDA) earnings, a major test for the AI sector following CEO Jensen Huang's departure. Wednesday features the FOMC Minutes, followed by Thursday's highly anticipated Anthropic IPO, scheduled to debut on Nasdaq under ticker ANT.
With inflation stubborn and AI valuations facing scrutiny, expect another potentially volatile trading week.
Join our daily livestreams at 16:00 GMT on YouTube as we break down the latest market developments. Also, we’ll have the ANT IPO live on Thursday…see you at Switch Markets on YouTube for all the coverage!