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PPI Data Reveals A Disconcerting 11,2% Rise, JP Morgan Reports A Decline in Profits & Crude Inventories Surge

USDJPY rallies to 20-year high, as U.S. PPI sets new record

USDJPY rose to its highest level in 20-years during today’s session, as traders were anticipating further rate hikes from the Fed. This came following the release of the latest producer price index, which showed that the index had risen to an all-time high.

💡 A key inflation measure shows us that energy costs are not the only
Without energy and food, the PPI stood at 9.2% over the same time frame. Stripping out trade services as well, the index increased 7% over the 12-month period. These numbers show that while energy costs play a huge role in the price spikes, there is still plenty of inflation beneath the surface.

The figures which came from the Bureau of Labor Statistics, showed that PPI had increased to 11.2% from the same period last year. Wednesday’s figure was the most the index has tracked at since its inception in November 2010.

As of writing, USDJPY hit a peak of 126.31, which is its most since June 2001.

JP Morgan stock lower, following decline in quarterly profits

On Wednesday, shares in JP Morgan were trading lower, as the investment bank reported its quarterly earnings.

The main headline from the report was the fact that profits had fallen to $8.28 billion, which is down 42% from a year earlier. Despite this annual drop in profits, both earnings and revenue for the quarter beat expectations.

Earnings came in at $2.76 a share versus estimates of $2.69, whilst revenue for was reported at $31.59 billion vs. $30.86 billion.

Speaking after the report, CEO Jamie Dimon said, “We remain optimistic on the economy, at least for the short term – consumer and business balance sheets as well as consumer spending remain at healthy levels – but see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine”.

Crude inventories surge higher than expected

Oil prices were once again higher on Wednesday, as crude inventories came in much higher than expected.

According to reports, inventories had risen by 7.8 million barrels for the week that ended April 7th.This comes as markets were expecting a decline of about 1.4 million barrels for last week, as the U.S. begins to strategically release its reserves.


source: tradingeconomics.com

Higher energy prices come Shanghai also started to ease recent lockdown restrictions, and gradually reopen bridges and tunnels.

WTI crude hit a high of $104.67 today.

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