Financial Markets Daily Report
12 April 2024

The ECB monetary policy meeting yielded, as expected, no change in the official interest rates and a communication consistent with a first rate cut in June, at the next meeting. Christine Lagarde reiterated, though, that the ECB will be data-dependent and added that it will not be Fed-dependent.

FMDR
  • The ECB monetary policy meeting yielded, as expected, no change in the official interest rates and a communication consistent with a first rate cut in June, at the next meeting. Christine Lagarde reiterated, though, that the ECB will be data-dependent and added that it will not be Fed-dependent.
  • Following the meeting, investors continued to expect a total of 3 rate cuts from the ECB in 2024 which would set the depo rate at 3.25%. In this context, yields on sovereign bonds rose on both sides of the Atlantic and equities declined in the euro area and rose in the US. 
  • Elsewhere, the US dollar strengthened markedly against most currencies and the euro fluctuated closer to $1.07. In commodity markets, the European natural gas references rose after Russia attacked an underground gas storage site in Ukraine. Oil Brent prices eased below $90 per barrel.
     
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