With European stocks struggling for momentum all week, all eyes are on the US PPI print on Thursday to create movement in markets.
The CPI print earlier in the week surprised slightly to the upside, although with some heavy corrections.
Analyst Andreas Steno remarked on Thursday morning: "We see risks tilted to the upside for the PPI release. Inflation pressures are not over in the US."
The PPI could be affected by rising supply chain pressures. The Global Supply Chain Pressure Index has risen over past months. Andreas Steno of Steno Research expands:
"There are some signs of tightening supply chains again due to weak shipping capacity in the Panama- and Suez Canals in recent months.
The energy market has also accelerated broadly through February, which typically also spills-over to higher producer prices almost immediately, even in core terms."
All this could point towards a hot PPI print, which could force a downturn in markets towards the end of the week.
