Overnight

Thus far from the overnight session to pre-market we have seen Chinese CPI and inflation come in hotter then expected. Food inflation came in at 7.5%, this is not as strong as January's 10.5% reading, but much stronger then China hoped and clearly shows potential for a widening of that number, things remain sticky in China, both economically and socially. As a reminder, social upheaval (which may be under way in China as China shuts down numerous blogs that talk about it) is one of China's greatest fears.

Bloomberg

China’s inflation accelerated more than forecast in March on a pickup in food prices, signaling that policy makers may exercise caution in adding stimulus to boost growth.

Consumer prices rose 3.6 percent from a year earlier, the National Bureau of Statistics said today. That was more than the median 3.4 percent estimate in a Bloomberg News survey of 33 economists. Food-related costs gained 7.5 percent.

China’s economy may have expanded last quarter at the slowest pace in almost three years, showing the limits of the nation’s contribution to global growth as U.S. job growth weakens and concern mounts about Europe’s sovereign-debt crisis.

“The upside surprise in today’s CPI reading is likely to raise concerns about a possible rebound in inflationary pressures among policy makers,” said Song Yu, a Beijing-based economist with Goldman Sachs Group Inc. “The data could limit the magnitude of the policy loosening that likely started in March,” Song said

Here's a story that is ironically timed considering the "Week Ahead" Post from last night,

Reuters:

 Some of the world's most prominent central bankers may have to hope the pen is as mighty as the sword.

With the Federal Reserve, the European Central Bank and other authorities in industrialized countries already stretching the limits of monetary policy, pressure has risen for them not go any further, and even to begin pulling back.

Bernie is scheduled to speak later tonight at 7:15 pm at an Atlanta F_E_D conference.


Other then that, with European/UK markets closed (forgot about the holiday), Futures have been listless all night).

 While ES futures look like they've seen a lot of movement overnight, note the 1378 level...

Here's the same level...


Lets see what the market has to offer...