Financial Markets Daily Report04 March 2024
In the last session of the week, investors traded with a moderately optimistic tone amid economic data releases that offered mixed signals on the monetary policy path ahead. On the one hand, the US ISM manufacturing index fell from 49.1 to 47.8 (49.5 expected), with employment and new orders subcomponents decreasing.
- In the last session of the week, investors traded with a moderately optimistic tone amid economic data releases that offered mixed signals on the monetary policy path ahead. On the one hand, the US ISM manufacturing index fell from 49.1 to 47.8 (49.5 expected), with employment and new orders subcomponents decreasing.
- On the other hand, euro area headline and core inflation fell 0.2 p. p. in February to 2.6% and 3.1%, respectively. Services inflation is showing more persistence than expected and suggests the last mile to 2% will be gradual.
- In this context, yields on sovereign bonds edged up in the euro area and declined markedly in the US. Elsewhere, equities rose across the board and the US dollar weakened against most currencies, with the euro trading above $1.08.
- This week the focus will be on the ECB monetary policy meeting (Thu.), on the February US employment report (Fri.) and on the Super Tuesday primary elections in the US, with 15 states voting.