In today’s briefing:
- A Crude Development
- EA: Inflation Back to Brutal Beatings
- CX Daily: The Covid-Fighting Struggle of China’s Nursing Homes
A Crude Development
- Brent Crude is approaching important levels at $124 and may be about to breakout
- The overall picture on the chart indicates a move to $150. If seen with rising yields again, it would yet again provide a negative backdrop for equities.
- While the S&P 500 may stretch up to 4,300 in the short term, that would be a sell zone as the medium term picture points to further downside.
EA: Inflation Back to Brutal Beatings
- EA inflation resumed its trend rise and tendency to exceed forecasts with a 61bp jump to 8.05% in May-22. Headline rates increased for all countries except the Netherlands.
- Upside news was broad-based across countries, except for the Netherlands, Spain and Cyprus. Food, energy, and core aggregates were all above our expectations.
- We still forecast another rise in June into a higher flattish peak, with excess inflation remaining relatively persistent in our view. The ECB seems set to hike in July.
CX Daily: The Covid-Fighting Struggle of China’s Nursing Homes
Cover Story: The Covid-fighting struggle of China’s nursing homes
Beijing probes whether hospital Covid protocols contributed to man’s death
China draws from next year’s budget for local government handouts
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