📆 Monday, March 18
► Markets are on the edge of their seats, awaiting crucial policy meetings from the Fed, Bank of England and the Bank of Japan this week, which are poised to set the tone for global markets in the coming months.
► In Europe, the Stoxx 600 remained steady, with consumer giants like Reckitt Benckiser bouncing back, hinting at an optimistic outlook. Markets were litte impacted by final Eurozone inflation data today which was reported at 2.6% thus nearing the ECB's 2% large.
► On the US front, the S&P500 and Nasdaq futures show signs of life amid rumors of Apple's potential collaboration with Google on AI technology spurred excitement, hinting at a significant shift in the AI landscape. As the countdown to the Fed’s Wednesday meeting begins, the bond market braces itself, reflecting a begrudging acceptance of a protracted high-rate environment. With inflation data still a thorn in the Fed’s side, traders are recalibrating their expectations for rate cuts, underscoring the ongoing battle with inflation. Although rate cut expectations have fallen, the swap markets still see a 58.5% chance of a Fed rate cut in June – too optimistic in the view of our chief analyst.
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