Financial Markets Daily Report17 April 2024
Generalized risk-off sentiment in yesterday’s session as markets remained attentive to further developments in the Middle East and as expectations of interest rate cuts, especially in the US, are delayed. Sovereign bond yields rose across the board and equities sold off globally, while the US dollar ended slightly higher, and Brent held steady at $90/barrel.
- Generalized risk-off sentiment in yesterday’s session as markets remained attentive to further developments in the Middle East and as expectations of interest rate cuts, especially in the US, are delayed. Sovereign bond yields rose across the board and equities sold off globally, while the US dollar ended slightly higher, and Brent held steady at $90/barrel.
- Yesterday was full of Fedpseak with Powell on the spotlight as he indicated that the Fed might need to keep rates higher for longer than previously anticipated given the lack of further progress in inflation, while other Fed officials omitted any mentions to interest rate cuts in their speeches.
- Other macro developments yesterday included the release of the IMF’s world economic outlook, in which 2024 global growth was revised upwards from 3.1% to 3.2% with US strength pushing world output, but warning of geopolitical and inflation risks. Today’s focus will be UK inflation data which will be key for determining the BoE’s next step.