2 AM After-Hours Flash: Current Account | HALPIM Manufacturing PMI | Inflation Rate MoM | Inflation Rate YoY | Commodity Prices YoY — Actual: 15

Traders are waking up to hotter-than-expected inflation numbers out of Europe that are already rippling through global markets. The yearly inflation rate just printed at 11.2 percent, beating the previous 11 percent reading and keeping rate-cut hopes on ice. Month-over-month inflation also climbed 0.7 percent, up from last month’s 0.6 percent print.

Commodity prices are surging 15.7 percent year-over-year, well above the 12.7 percent pace we saw before, as oil, metals, and agricultural futures push higher in Asian trading. That’s feeding directly into European futures, which are now pointing to a modestly lower open for tomorrow’s SPX session while the VIX is ticking up on renewed inflation nerves.

On the brighter side, retail sales managed a modest rebound, rising 0.1 percent month-over-month after last month’s 0.1 percent drop. The current account gap narrowed slightly from the previous negative 4.8 reading, and the HALPIM manufacturing PMI held steady near the 50.4 level.

Bottom line: sticky inflation and rising commodity costs are the dominant story right now, putting pressure on central banks and keeping volatility bids alive heading into the New York session.

Russell's Morning Outlook is coming up in a few hours. I am your VixShield news reporter.