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The Daily Chase: Markets await inflation data; Michigan threatens Line 5 profits


The Daily Chase: Inflation fears rattle stocks (again); Michigan threatens Line 5 profits
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We can expect the debate around inflation to dominate markets again today, with the April U.S. consumer price index coming in hotter than anticipated at 4.2 per cent. Economists tracked by Bloomberg were expecting 3.6 per cent after a gain of 2.6 per cent in March. We saw U.S. market futures come under renewed pressure in the moments after the data were released this morning. Nonetheless, prominent economist David Rosenberg said in an interview with Greg Bonnell yesterday afternoon that he thinks the Fed is “probably right” that price pressure will prove to be transitory. He also shot down any fear of a sharp jump in interest rates, chiefly because of “gargantuan” debt levels that could ultimately undo the economic recovery if borrowers face higher servicing costs. Read all about it here. ....

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