Both tend to do well when inflation is up and bonds are underperforming.

They'll be looking at the PPI with a real hard eye for what inflation is going to be.

They'll be looking at the PPI with a real hard eye for what inflation is going to be,

An unexpected surge in wages would likely see the bank raising its inflation forecast and needing to tighten rates, so keeping a close eye on wages and inflation data in the coming quarters will be important.

If we get evidence of inflation pushing up beyond the levels we've seen already, then it's game on for an ECB rate hike in December. We would give it about a 35 percent chance at the moment but that could increase quickly should we get surprises in the next inflation reports.

It shows that underlying inflation is still tame and only slowly edging up. That means the Fed can take its time hiking rates. The only question is whether it keeps moving at every meeting or takes a break now and then.