📆 Tuesday, April 2
► European stocks showed resilience, capitalizing on the post-Easter momentum, with Stoxx 600 futures up close to 0.5%. European bond markets experienced a sell-off, following the downturn in US Treasuries yesterday, as expectations for Federal Reserve easing adjusted in light of recent strong US data. German 10-year yields saw an uptick, aligning with movements in Australian and New Zealand notes. In March, Europe's manufacturing activity contracted, with France and Germany experiencing declines in PMI to 46.2 and 41.9, respectively, signaling persistent sector challenges and a struggling Eurozone economy. The rising bond yields in view of the change in expectations regarding the Federal Reserve's monetary policy also creates some headwinds – for US but also global equities.
► In the US, S&P and Nasdaq futures remain nearly unchanged. Market participants are reevaluating the pace and extent of potential Fed interest rate cuts following unexpectedly robust manufacturing data. This sentiment adjustment comes as the market anticipates more definitive data on employment and wage growth, crucial for the Fed's inflation containment measures. Fed Chair Jerome Powell's upcoming speech (Apr 3) is highly anticipated for further clues on the monetary policy direction.
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