📆 Wednesday, March 13
► European markets show slight gains, rising little as investors digested rather dovish signals from the European Central Bank, hinting at possible rate cuts in the near future. This cautious optimism was mirrored in a flat opening of the Stoxx Europe 600 (now +0.15%), despite notable gains in the retail sector led by Zalando's strong earnings report. The UK market outperformed, buoyed by recent job market data indicating a cooling trend. This development provides some relief to the Bank of England's inflation concerns, influencing gilt yields, increasing rate hopes and the FTSE 100's upward trajectory. Our chief analyst Robert Lindner still expects the ECB to initiate rate cuts soon, with Bank of France’s Francois Villeroy de Galhau also suggesting a spring rate cut, possibly in June. Bond yields in Europe, including Germany's 10-year yield, declined, reflecting softer rate hike expectations.
► In the US, the S&P 500 and Nasdaq 100 futures showed little change following another record session on Wall Street. Treasury yields dipped slightly, and the USD index remained steady, as market participants digested Fed rate cut prospects and upcoming central bank meetings. Fed rate cut bets persist despite Tuesday's higher-than-anticipated US inflation data. Investors eye the FOMC’s rate outlook, especially after employment and inflation updates, for potential policy shifts in the March 19-20 meeting. Investors look forward to US retail sales and producer inflation data, keeping an eye on the Federal Reserve’s upcoming policy decisions.
Subscribe to see more
