European, Australian, and Hong Kong markets are closed for the Easter holiday.
US stock futures saw an uptick and gold reached a record high, spurred by the recent slowdown in inflation data, which fueled speculation about a possible Federal Reserve interest rate cut this year.
S&P 500 futures rose by 0.4%, during a period when European, Australian, and Hong Kong markets were closed for Easter. Companies like Nvidia Corp., Advanced Micro Devices Inc., and Microsoft Corp. showed gains in pre-market trading, indicating a potential surge in technology stocks. Gold’s value hit a new peak of $2,265 per ounce on Monday, marking a 1.6% increase from Thursday, while the dollar index showed a slight decline. Meanwhile, Bitcoin’s value dipped below $70,000.
The deceleration observed in the Federal Reserve’s preferred inflation measure last month, alongside a surge in consumer spending, suggests that the positive market trend driving stocks to record highs this year is likely to continue. The core personal consumption expenditures price index, excluding food and energy, increased by 0.3% from the previous month, a slowdown from January’s unexpected surge.
Matthew Luzzetti, Deutsche Bank’s chief US economist, noted, “The Federal Reserve is currently very focused on data. Until we have either confirmation or an alternative perspective on the forthcoming data, it’s challenging to determine the exact outcome regarding the Fed’s policy direction.”
During a Friday event, Federal Reserve Chairman Jerome Powell reiterated that the US central bank is not hurried to reduce interest rates, as decision-makers are looking for additional proof of inflation being under control.
Upcoming Key Events This Week:
- US construction spending and ISM Manufacturing on Monday
- Bank of Canada’s business outlook and consumer expectations survey on Monday
- Eurozone, France, Germany, India’s manufacturing PMI data, and Germany’s CPI on Tuesday
- Mexico’s international reserves and South Korea’s CPI on Tuesday
- Spain’s unemployment figures and UK’s manufacturing PMI on Tuesday
- US factory orders, light vehicle sales, and JOLTS job openings on Tuesday
- Brazil’s industrial production on Wednesday
- Eurozone CPI and unemployment data on Wednesday
- Hong Kong retail sales on Wednesday
- US ISM Services on Wednesday
- Eurozone, India services PMI and US initial jobless claims and trade data on Thursday
- Eurozone retail sales and France’s industrial production on Friday
- Germany’s factory orders and Hong Kong PMI on Friday
- India’s rate decision and Japan’s household spending on Friday
- Philippines CPI, Russia GDP, Singapore retail sales, and South Korea’s current account balance on Friday
- US unemployment and nonfarm payrolls on Friday
Market Movements:
- S&P 500 futures up 0.4% as of early morning in New York
- Nasdaq 100 futures up 0.5%
- Dow Jones Industrial Average futures up 0.4%
- MSCI World index down 0.1%
Currency Market:
- Dollar Spot Index relatively unchanged
- Euro stable at $1.0787
- British pound steady at $1.2620
- Japanese yen holding at 151.37 per dollar
Cryptocurrency Market:
- Bitcoin down 1.9% to $69,492.95
- Ether drops 2.4% to $3,545.44
Bond Market:
- 10-year Treasuries yield down one basis point to 4.19%
- Germany’s 10-year yield stable at 2.30%
- Britain’s 10-year yield unchanged at 3.93%
Commodity Market:
- West Texas Intermediate crude stable
- Spot gold up 1.1% to $2,254.12 an ounce
