📆 Thursday, March 21
► Global stocks soar after the Federal Reserve signals readiness for three interest-rate cuts this year. The FOMC kept its 2024 outlook for three cuts and begins slowing its bond-holding reductions, suggesting manageable concerns over recent price rebound pressures. US Treasuries continued to rise with yields falling as expectations grow for a June rate cut. The USD weakened – even against the recently weak JPY. The SNB surprised with already conducting a first rate cut. The CHF tumbled after the decision, falling more than 1% against the USD and even more against other major currencies.
► European markets rise, with the Stoxx 600 climbing over 0.7%. Focus goes on to the Bank of England's upcoming monetary policy decision (12:00 UTC+0), with anticipation for continued rate stability to address inflationary pressures. The latest PMI figures in Europe presented a mixed picture. The Eurozone's composite and services PMIs edge higher in March, signaling resilience in the services sector despite manufacturing's slight retreat. This contrast highlights the uneven recovery across different sectors. We also see an increase in Germany’s composite PMI, while France’s shows a decline.
► Following the Federal Reserve's recent indications of upcoming interest rate cuts, global US futures rose significantly. We see the Nasdaq and S&P 500 rising 0.6% and 0.3% respectively after yesterday's strong (record) finishes. The tech sector, riding the wave of AI demand, notably contributed to the momentum, with companies like Micron spotlighting the industry's robust outlook.
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