US: Producer prices data awaited - Nomura

Analysts at Nomura, suggest that US producer prices is the main economic release from the forthcoming US session which is likely to garner maximum investors’ attention.

Key Quotes

“Headline PPI remained flat in May, partially driven by weakness in energy and food prices. The PPI index for trade services, which represent the margins received by wholesalers and retailers, rebounded 1.1% m-o-m. PPI excluding food, energy and trade services was still weak, falling 0.1%. Overall, the contribution of PPI to core PCE inflation was smaller than in April.”

“Among the components relevant to PCE deflators, portfolio management service fees continued to increase, but at a slower pace than in April. As for medical care-related items of PPI, hospital service prices were down 0.2% m-o-m and physician service prices were essentially unchanged. For the June PPI report, it is possible that service prices continue to contribute positively to the topline PPI inflation while weak energy-related prices continue to exert downward pressure.”