The Daily Chase: Inflation day in Canada; Stocks jump on China safety net

It’s (almost) all about inflation today.

It’s (almost) all about inflation today. We start at home, with Statistics Canada’s consumer price index for February surging 5.7 per cent, which outpaced expectations and marks the hottest inflation in this country since August 1991. Data tracked by Bloomberg indicates the market is banking on at least seven more quarter-point rate hikes by the Bank of Canada this year.

Across the border, the U.S. Federal Reserve is expected to raise the target for its federal funds rate for the first time since 2018. We’ll see how the renewed uncertainty stemming from Russia’s attack on Ukraine factors into the central bank’s thinking, and how the dot plots will evolve after the last batch suggested three rate increases were in the cards this year. We’ll have plenty of analysis throughout the day, capped off by an interview with former Richmond Fed President Jeffrey Lacker at 4:20 p.m.

CHINA PROPS UP MARKETS

Global stocks are on the rise this morning (including a surge of nine per cent for the Hang Seng) and energy commodity prices have stabilized after Beijing put a safety net under asset prices. The state-owned Xinhua news agency reported China’s State Council is “urging measures” to stabilize the economy and capital markets, adding that “any policy that has a significant impact on the capital market should be coordinated with the financial regulatory authorities in advance to maintain stable and consistent expectations.” And so it’s off to the races as stocks surge, including gains of almost 20 per cent for Alibaba’s American depository receipt.

FREEDOM MOBILE SWEEPSTAKES

Anthony Lacavera isn’t refuting The Globe and Mail’s report that he’s lined up some financial backers for a $3.75-billion offer for Freedom Mobile. When reached via email, he told us he has no comment on the story. But he reiterated what he said Monday: he has an interest in Freedom Mobile, and underscored that he would have never sold Wind Mobile (which was later renamed Freedom) if not for “regulatory challenges.” In a note to clients after The Globe published its story, RBC Capital Markets Analyst Drew McReynolds said a deal with Globalive would be “an incremental positive” for Rogers since it would remove some uncertainty as it attempts to close the takeover of Shaw. He also said it would be a “near-term positive” for Quebecor shares, since investors have been weighing the possibility that it would bid (possibly too much) for the assets.