Financial Markets Daily Report22 March 2024
Economic activity data and central bank decisions centered the stage in yesterday’s session. On the one hand, the Bank of England kept interest rates unchanged and hinted that the next move could be a rate cut, as there have been “further encouraging signs that inflation is coming down”. The Swiss National Bank cut rates by 25bp to 1.50%.
- Economic activity data and central bank decisions centered the stage in yesterday’s session. On the one hand, the Bank of England kept interest rates unchanged and hinted that the next move could be a rate cut, as there have been “further encouraging signs that inflation is coming down”. The Swiss National Bank cut rates by 25bp to 1.50%.
- On the data front, March PMIs confirmed the dynamics observed in the prior two months, with the euro area Composite index still below 50, dragged by the weakness in the manufacturing sector. In the US, the manufacturing index increased slightly towards 52.5 while services slipped and remain comfortably above the 50-point threshold (52.2).
- In this context, sovereign yields edged down in the euro area and increased in the short end of the US treasury curve. Elsewhere, equities advanced across the board, particularly in Asia, and the US dollar strengthened against most peers.
- The next Financial Markets Daily Report will be released on April 2nd. Happy Easter!