The stock market burns with CPI.

The stock market burns with CPI.
The December consumer price index, which is said to have been the most important of the data released recently, provided investors with relief with a lower-than-expected decline in core prices.
In particular, housing costs, which have been perceived as the biggest headache so far, fell to their lowest level since January 2022, and real wages also fell, significantly easing inflationary pressures.
Interest rates and the dollar plunged on positive inflation data and turned downward, which was a huge boon for the market.
But if you look at it more soberly, there is not much change in the trend, because inflation is too high to change the Fed's stance and it is too high to be seen as a trend.
It is also concerning that the rise in energy prices is strengthening, especially as oil prices soared to $80 in January.
PMI price indicators, which are recognized as the fastest leading indicators of actual prices, and manufacturing price indicators of the regional Fed are soaring, so the possibility of inflation re-accelerating cannot be ruled out.
In fact, Morgan Stanley is suggesting the possibility of inflation rising again in January. The federal funds rate futures market has also seen little movement in bets on a rate cut in June.
The December CPI, in conclusion, offered investors some relief. Now the market is headed for corporate earnings.


As expected, Mexico, which cannot afford to meet the 25 percent tariff, fell first. As Trump ordered, they decided to discuss details again by strengthening border defense to catch fentanyl and illegal immigrants, and suspending tariffs for a month. Mexico has recently made a lot of money by making way for bypass export of Chinese exports, but this tariff negotiation will reverse all of that. Canada's Trudeau, who spoke with Trump after hearing the news of Mexico, also seems to have finished talking well for now.

Trump's remarks, which appear as a breaking news, are a good idea.

"I had a good conversation with Trudeau. We're not being treated well by Canada, and we don't need Canadian car timber farming in particular. It's OK to make our cars in the United States."

"We haven't agreed on tariffs with Mexico yet. We'll have a big deal, maybe within 24 hours we'll talk to China as well. Chinese tariffs (10%) are actually the opening round. China won't be involved in the Panama Canal for long. If we fail to negotiate, Chinese tariffs will go up."

"USAID is a good concept, but the problem is that there are radical left-wing lunatics. I like the idea of imposing mutual tariffs on more countries."

"There are valuable rare earths in Ukraine, and we are asking Ukraine to guarantee them. We want Ukraine to provide rare earths."

Politico breaking news that pops up just in time
- U.S. withdraws from U.N. Human Rights Council

Wow... this horrible thing and Korea with only dismal civil servants left without a president should negotiate tariffs soon...?