US: PCE core inflation and ISM manufacturing in focus – Danske Bank

Analysts at Danske Bank suggest that the release of US PCE core inflation and ISM manufacturing numbers will garner maximum investors’ attention in today’ session.

Key Quotes

“US PCE core inflation for January is due to be released today. PCE inflation has been quite flat at around 1.7% since August with no clear trend. We estimate PCE core was 0.25% m/m and 1.7% y/y in January. The release will be particular interesting in light of the recent repricing of the probability of a hike at the coming March meeting - now at 70%.”

“US ISM manufacturing for February is also due out today. The preliminary manufacturing PMI showed a small decline and the same may be true for ISM given that ISM has recently been a bit higher than PMI. However, regional PMIs have been quite strong.”

“Today EIA will report on US crude stocks last week. Yesterday, API was said to report that stocks rose 2.5mb last week. Hence, the market will be positioned for a similar rise in the official numbers from EIA.”