Fed, Trump, China and Middle East all on tap - ANZ

Analysts at ANZ explained that US core inflation will accelerate materially beyond 2.0% have subsided of late and are keeping an eye on 

Key Quotes:

"Expectations that the Fed may hike four times this year have continued to soften (with 56bps priced in by year-end). 

Last week, core inflation was slightly weaker than expected (at 2.1% y/y). And Friday’s data showed import prices are contained and inflation expectations anchored. 

Moreover, President Trump wants to deregulate prescription drug prices, which will weigh on inflation."

"Markets have a bit to mull over heading into the new week. On the US-China trade front, rhetoric continues to soften, with Trump telling the Commerce Commission to get Chinese telecommunications manufacturing firm ZTE back in business. 

On the other hand, Middle East tensions remain at the fore, with Trump to go ahead on Monday with plans to set up an embassy in Jerusalem. 

And on Sunday, OPEC president Suhail Al Mazrouei said that OPEC members have an adequate “buffer” of potential supply to cushion oil markets if the US re-imposes sanction on Iran."