Things That Stick Out - Latest on the Fed

Thursday's smaller-than-expected rise in US CPI gives the Fed room to perhaps take at least one foot off the brake.

Indeed, peak rate pricing in the futures market has eased from as high as 5.25% a week ago to just above 4.80% now.

Predictably, asset markets everywhere are taking it a step further and celebrating the end of the tightening cycle.

What next?

One possibility is that this 'peak rate' party is premature and the easing of financial conditions, combined with a potential reopening in China, reignites inflation.

1) It wouldn't take much to remind investors that global commodities markets remain supply constrained, especially in the metals and energy sectors.

Look at copper. Highest since early Summer.