Financial Markets Daily Report 05 April 2024
In yesterday's session, new data supported investors' expectations that interest rate cuts could begin this summer, which sent euro area and US sovereign bond yields down. Specifically, weekly unemployment benefit claims rose in the US, and the minutes from the ECB's March meeting confirmed officials are confident inflation is moving in the right direction.
- In yesterday's session, new data supported investors' expectations that interest rate cuts could begin this summer, which sent euro area and US sovereign bond yields down. Specifically, weekly unemployment benefit claims rose in the US, and the minutes from the ECB's March meeting confirmed officials are confident inflation is moving in the right direction.
- At the same time, Powell spoke yesterday and emphaized there is no need to rush to cut rates until there is enough confidence inflation is sustaianbly reaching the 2% target. Equity markets interpreted the message as hawkish and the main US indices ended the session lower. In the euro area on the contrary, the main indices posted small gains.
- In commodities, the barrel of Brent crossed the $90 mark as geopolitcal tensions escalate in the Middle East.
- Today all eyes will be on the US March labor market report, which will give further clues about the next steps the Fed might take. In the euro area, retail sales data for Febreuary will also be published.