Watching Energy and China After Latest CPI
Just saw the CPI numbers, and while the headline was mostly as expected, the core services component is still a bit sticky. This reinforces the 'higher for longer' narrative for rates, which, admittedly, isn't new, but it just got another stamp of approval. I'm keeping a close eye on energy plays like $XOP, currently at 189.54. If we see a sustained higher interest rate environment, that could eventually put some pressure on demand, though for now, supply dynamics seem to be holding up. On the flip side, with the yuan showing some recent stability, I'm also looking at $FXI at 35.86. If China's economy continues its slow but steady rebound, that could present some interesting opportunities, even if the broader macro picture remains complex. Just curious what others are thinking given these latest data points.