Financial Markets Daily Report15 March 2024
Macro data releases in the US yesterday gave investors mixed signals about the state of the economy. Higher-than expected producer price index (1.6% yoy vs 1.2% expected) and lower-than-expected retail sales (0.0% vs 0.4% expected) warned about sticky inflation and an economic slowdown, but unemployment benefit requests surprised to downside.
- Macro data releases in the US yesterday gave investors mixed signals about the state of the economy. Higher-than expected producer price index (1.6% yoy vs 1.2% expected) and lower-than-expected retail sales (0.0% vs 0.4% expected) warned about sticky inflation and an economic slowdown, but unemployment benefit requests surprised to downside.
- In the euro area, different statements by ECB officials, including Phillip Lane, Muller and Knot, again pointed to summer as being the likely time for the first rate cut, and emphasized once more the ECB’s data-dependent approach.
- In this context, markets traded on a risk-off tone. Sovereign bond yields rose notably on both sides of the Atlantic, and euro area periphery economies’ risk premia widened. Equities edged lower, with smaller losses in the US.
- Elsewhere, oil prices continued to climb, and are now trading around $85/barrel of Brent, following a report from the IEA predicting a stronger demand this year combined with a softer supply growth than previously expected.