Global markets focus on Fed inflation data

SHAFAQNA TURKEY – With US labor markets remaining strong, questions about the course of inflation will be answered today.

The country is projected to increase the consumer price index (CPI) in March by 0.2 percent monthly, and annual inflation will decrease to 5.1 percent from 6 percent.

While the roadmap for steps the Fed should take to fight inflation is expected to become clearer with today’s data, the Bank is projected to raise interest rates by 25 basis points next month with a 71% chance. in pricing in the money markets.

While estimates in the money markets that the Fed will cut interest rates for the rest of the year remain strong, Fed members continue to state their determination to fight inflation.

New York Fed President John Williams said yesterday that the Fed still has a lot to do in the fight against inflation and that they should not change the direction of monetary policy, despite the crisis in the banking sector.

Chicago Fed President Austen Goolsby, on the other hand, stressed that the Fed needs to be careful and patient about raising interest rates, and said it needed to be sure the banking crisis of last month would not happen again.

On the other hand, while the Fed’s minutes, which will be announced today, are in the focus of investors’ attention, it is expected that possible clues about the bank’s future monetary policy will have an impact on asset prices.

The latest situation in world markets

Yesterday, against the backdrop of these events, the S&P 500 index in the New York stock market remained unchanged, while the Dow Jones index added 0.29%. The Nasdaq fell 0.43%. Futures contracts for indices in the US started the new day with limited growth.

Although there was an uptrend in European stock markets yesterday, the macro data calendar, which will strengthen from tomorrow, is expected to increase volatility in the markets.

While it is considered clear that the European Central Bank (ECB) will raise interest rates by 25 basis points at its meeting next month due to sustained inflation across the region, data to be announced in the last two days of this week is expected to be price adjusted. for the June and July meetings.

Yesterday, the DAX 40 index rose 0.37% in Germany, the FTSE 100 index rose 0.57% in the UK, the MIB 30 index rose 1.15% in Italy and the CAC 40 index rose 0.89% in France. Futures for indices in Europe started the new day with a decline.

Asian stock markets also showed cautious dynamics ahead of US inflation data.

While growth in the Producer Price Index (PPI) eased to 7.2 percent in March, it remained above expectations, while major equipment orders beat expectations with a 9.8 percent annual gain, according to data released today in Japan.

On the other hand, the fallout from the announcement by prominent investor Warren Buffett that he has invested in Japanese companies and that he will increase those investments continues.

While the Nikkei 225 index rose 0.6% in Japan, the Shanghai composite index rose 0.3% in China and the Kospi index rose 0.1% in South Korea, the Hang Seng index fell 0.7% in Hong Kong. TRT