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Markets Today: Europe’s Inflation Worries
Upside surprises to European inflation out of Spain and France have seen ECB pricing and European yields push higher, with some bleed through into the US. Elsewhere, US equities are little changed, shrugging off soft consumer confidence data, but are and on track for a monthly decline of more than 2%. The key data overnight was French and Spanish CPI. On an EU harmonized basis, Spanish CPI was 6.1% y/y from 5.9 and 5.7% expected (though the monthly print was just 1 tenth higher at 1.0% from 0.9%). French CPI was 7.2% y/y from 7.0% and 7.0% expected. The data are suggestive of upside risk to German CPI tonight and EU ... (full story)