Cappuccino Commentary
Most asset classes posted gains in March on the back of improved economic data globally as well as expectations that central banks will begin cutting rates by year end 2024.
Most asset classes posted gains in March on the back of improved economic data globally as well as expectations that central banks will begin cutting rates by year end 2024.
US stock market indices took a hit on Thursday morning after data showed that US economic growth was less than expected in the first quarter. Gross domestic product increased to an annualised rate of 1.6% which was lower than the 2.4% figure expected by economists.
UK inflation slowed less than expected in March to an annual rate of 3.2 per cent. The figure was slightly higher than the 3.1 per cent forecasted by economists and led the markets to push back its Bank of England rate cutting expectations to either September or November.
US inflation came in higher than expected, rising 3.5 per cent year on year in March. Bond and stock prices fell on the back of the news and the market pushed back on its summer rate cut forecast as inflation continues to prove stickier than previously expected.
Eurozone inflation fell below expectations to 2.4 per cent in March. Inflation fell from the 2.6 per cent reported in the previous month and helped bolster expectations that the European Central Bank will cut interest rates by the summer with most analysts expecting policymakers to cut rates in June.
UK shop price inflation in March fell below 2 per cent for the first time in more than two years.
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