EUROPEAN INFLATION: March CPI Preview - Expected To Accelerate

St Louis Fed’s Musalem (’25 voter, hawk) has given a speech on the economic and monetary policy outlook, broadly in keeping with prior remarks from Feb 20 – especially on the need to keep policy as “modestly restrictive” – although it did include a greater focus on the need to keep inflation expectations anchored. Some highlights from his speech with full text here: 

• “While there has been an uptick in near-term inflation expectations, which I am watching closely, longer-term inflation expectations have broadly remained stable. We have more work to do to achieve price stability.”
• “The outlook for continued solid economic growth looks good, the labor market is healthy, and financial conditions are supportive. But recent data have been weaker than expected, posing some downside risk to growth.”
• “In determining how monetary policy should respond to alternative scenarios, especially when they might involve difficult employment and inflation trade-offs, it will be important that medium- to longer-term inflation expectations remain well anchored.”

• Date $MM Issuer (Priced *, Launch #)
• 03/03 $2.5B #Sumitomo Mitsui $500M 3Y +60, $500M 5Y +75, $1B 5Y SOFR+99, $500M 10Y +90
• 03/03 $1.25B #Virginia Electric $625M 10Y +100, $625M 30Y +120
• 03/03 $1B Alumina PtyLtd 5NC2, 7.5NC3
• 03/03 $Benchmark Synopsys 2Y +60, 3Y +70, 5Y +85, 7Y +95, 10Y +100, 30Y +125
• 03/03 $Benchmark America Honda 3Y +85a, 3Y SOFR, 5Y +100a, 10Y +120a
• 03/03 $Benchmark Duke Energy 2Y +60a, 10Y +110a, 30Y +130a
• 03/03 $Benchmark Columbia Pipelines 10Y +125, 30Y +148
• 03/03 $Benchmark PayPal 3Y +50, 3Y SOFR+67, 10Y +92
• 03/03 $Benchmark MPLX 10Y +155a, 30Y +185a
• 03/03 $Benchmark Tampa Electric 10Y +125a
• 03/03 $Benchmark Nucor 5Y +70, 10Y +95
• 03/03 $Benchmark CME Group 5Y +70a
• 03/03 $Benchmark Humana 10Y +138, 30Y +160
• 03/03 $Benchmark Synchrony Financial 6NC5 +145 
• Expected Tuesday:
  • 03/04 $3B KFW WNG 2028 +31a
  • 03/04 03/03 $750M Chord Enery 8NC3

• Stocks are trading moderately weaker ahead midday Monday, consolidating after this morning's data, higher than expected ISM Prices Paid while ISM Mfg, Orders and Employment figures were lower than expected as Treasuries reversed early losses to new session highs.
• Currently, the DJIA trades down 39.5 points (-0.09%) at 43802.42,  S&P E-Minis down 1 points (-0.02%) at 5962.5, Nasdaq down 53.4 points (-0.3%) at 18795.89.
• Information Technology and Energy sectors underperformed in the first half, semiconductor makers weighing on the former: Nvidia -4.75% (reportedly as "Singapore is investigating whether Dell Technologies Inc. and Super Micro Computer Inc. servers shipped to Malaysia housed Nvidia Corp. chips barred from China" Bloomberg reprted). Meanwhile, Enphase Energy declined -3.49%, First Solar -3.31% and Broadcom -2.71%.
• Leading laggers in the Energy sector included APA Corp -2.46%, Valero Energy -2.03%, Marathon Petroleum -1.97% and EOG Resources -1.84%.
• On the positive side, Real Estate and Health Care sectors outperformed in the first half, investment trusts buoyed the former with Weyerhaeuser +3.29%, Ventas +1.95% and Host Hotels & Resorts +1.58%. Viatris +4.39%, Teleflex +2.98% and Medtronic +2.48% supported the Health Care sector.
• Expected earnings announcements for Tuesday include Target Corp and AutoZone Inc before the open while Crowdstrike Holdings and Ross Stores report after the close.