From Euronews: 2024-04-09 05:59:54

This week, the European Central Bank (ECB) and the US are set to release crucial economic data that will impact global market sentiment, with the European stock markets experiencing a decline following a period of gains due to uncertainty surrounding central bank policies and rising crude oil prices.

The Eurozone’s inflation has been cooling, with the estimated CPI for March dropping to 2.4%, potentially delaying rate cuts by the ECB. However, the central bank is expected to start cutting interest rates in June amid easing inflationary pressure in major economies, despite concerns over wage growth and service prices.

In the UK, focus will be on the monthly GDP for February as the country attempts to recover from a technical recession in late 2023, with an expansion of 0.2% in January and an uptick in manufacturing PMI for March indicating positive signs for the economy’s recovery.

In the US, Wall Street saw a negative impact from government bond yield surges last week as strong economic data diminished hopes for a June rate cut by the Fed. The upcoming US Consumer Price Index (CPI) for March will be closely watched to determine the central bank’s rate cut timing, as inflation continues to play a crucial role in market sentiment.

The Bank of Canada’s rate decision this week will draw attention in local markets as the bank is expected to keep the interest rate unchanged at 5% for the sixth consecutive time, citing upward pressure on inflation from wage growth and shelter prices. The TSX mirrored global trends, nearing its all-time high last week in line with prevailing market sentiment.

In the Asia-Pacific region, focus will be on a series of Chinese economic data releases for March, including new yuan loans, CPI, PPI, and trade balance figures, which are expected to provide insights into China’s economy’s performance in the first quarter. Additionally, all eyes will be on the RBNZ’s decision on the cash rate, with expectations for rates to remain unchanged at 5.5% following the country’s technical recession in late 2023.



Read more at Euronews: The week ahead on the markets as the ECB prepares for its rate decision