Prices shown at a grocery store in New York City on February 1, 2023.
Leonardo Muñoz | Corbis News | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
Yellen talks about China’s dumping
U.S. Treasury Secretary Janet Yellen has warned that China is dumping excess solar panels and electric vehicles on the global market, distorting market prices. Beijing’s actions could harm U.S. green manufacturing companies, she added. Yellen said she would press China on these practices during her upcoming trip to China.
Xi Jinping meets with senior US executives
Chinese President Xi Jinping has met with top U.S. executives as business circles try to ease tensions between the two countries. U.S. business leaders include Blackstone Group founder Stephen Schwarzman, Qualcomm President and CEO Cristiano Amon and Bloomberg Chairman Mark Carney. It marks Beijing’s latest effort to increase foreign investment in China at a time when relations between China and the United States remain tense.
Baltimore port crisis
Global ocean carriers are leaving U.S. companies facing emergency pickups as the Baltimore Harbor Bridge collapses. After a container ship hit the Francis Scott Key Bridge early Tuesday, logistics executives told CNBC that the next few days could be critical in moving trade away from the port.
(PRO) Is it time to hedge?
Fund managers say investors anxious about market declines should hedge their positions to limit exposure to financial assets. “So I do think if you’re in the index or have done well this year or even last year,” said David Neuhauser, founder and chief investment officer of Livermore Partners, Among certain companies, now is the time to hedge.”
bottom line
Wall Street will gain a deeper understanding of underlying trends in inflation.
Personal consumption expenditures price readings, the Fed’s preferred measure of inflation, will be released on Friday.
Federal Reserve Governor Chris Waller said on Wednesday that he would pay close attention to the personal consumption spending data.
“Some forecasts predict that core PCE inflation may be revised higher in January, with inflation expected to be 0.3% in February, which we will know on Friday,” he said in a note. a speech.
“Adding this new data to what we saw earlier this year reinforces my view that there is no rush to lower policy rates.”
He noted that it would be “prudent” to keep interest rates at their current restrictive stance “possibly for longer than previously thought” to keep inflation at the Fed’s 2% target.
The Federal Reserve maintained its policy of cutting interest rates three times this year at its last meeting.
Economists at S&P Global Market Intelligence said in a note that any surprises on the rise in personal consumption spending “will likely be ignored by the market” after the Federal Reserve reiterated three times its intention to cut interest rates by 25 basis points in 2024. “This is despite recent higher-than-expected inflation data.”
Investors are still cautiously optimistic about expectations for the Federal Reserve to cut interest rates, and there is still uncertainty about the timing of the first rate cut.
However, the market’s reaction to the latest PCE data won’t be clear until next week, as Wall Street will be closed for the Good Friday holiday.
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