The rate of growth in US consumer prices dropped in April leading markets to price in more chances of rate cuts from the Fed
After a remarkably strong first quarter, the US stock market pulled back in April for the first time since October last year.
The Bank of England (BoE) is widely expected to keep interest rates unchanged when it meets later this week. Data from Reuters shows a 90% chance of no change to the current rate of 5.25%, but the central bank will need to decide whether to change the messaging about rate cuts this year as traders will be paying close attention to any rate-cut clues.
Investors are keeping a close eye on gold as the conflict in the Middle East escalates with a possibility of a full-scale regional war in the area.
The bullish momentum in oil prices remains strong as escalating geopolitical tensions raise concerns about supply.
The latest US CPI reading hasn’t gone how the Federal would have hoped. Consumer prices came in higher than expected in February for the third month in a row.
Central banks dominate the calendar in March and markets try to anticipate which one will be the first one to cut
UK banks will be in the spotlight in the week ahead as the European earnings season continues
While the Magnificent Seven have dominated market momentum in recent months, it’s not true that they are the sole drivers of the recent rally in equity markets.
Markets have no doubt that the BoE will keep its rate unchanged
Markets expect the Fed to keep rates unchanged as strong economic data continues
Market Analysis: UK economy rebounds in November – how does that impact rate cut expectations?
UK stocks rise on softer inflation as rate cut odds increase
US stocks glide higher as risk-on appetite increases post-FOMC
Trio of rate holds expected from the Fed, ECB, and BoE this week