A benign Producer Price Index yesterday morning saw the core number come in flat at 0% month-over-month vs. expectations of a 0.4% gain but it failed to produce the same market response we saw after the Consumer Price Index last week. Following a relatively muted gap-up open, at least compared to last Thursday’s post-CPI jack, the indexes peaked near the open and began executing a slow-motion rollover maneuver.
Then news that Russian missiles had hit Polish territory and killed two civilians came out of nowhere and sent the indexes skidding to the downside. Overnight it was revealed that the wayward missiles were most likely of Ukrainian origin, fired in defense at incoming Russian missiles. With the start of World War III at least delayed for now, the futures were free to clamber back above the unchanged line overnight.