Just in case there's not enough volatility in your life, the U.S. releases consumer inflation data at 08:30 ET (12:30 GMT).
Whether it will behave well enough to calm investors' nerves rattled by three bank failures in the past week is anyone's guess
Stocks are up a little ahead of the all-important number, but the market is not buying back regional banks' stocks with any conviction yet, and expectations for
central bank action over the next two weeks have turned decidedly dovish. And crude oil prices hit their lowest level so far in 2023 as the outlook for the economy darkens. Here's what you need to know in financial markets on Tuesday, March 14th.
The U.S. releases consumer inflation data for February at 08:30 ET into a febrile market still absorbing the implications of last week’s bank collapses and the authorities’ attempts at the weekend to stop them spreading.
Inflation, which is still three times the Federal Reserve’s 2% target despite trending down for six months already,
has the potential to stop the central bank from easing financial conditions. That’s especially true if it surprises to the upside again, as it did in January.
Analysts expect the headline rate to slow to 6.0% from 6.4% as last year’s energy spike starts to raise the base level for comparisons, but the consensus forecast for a chunky monthly gain of 0.4% suggests inflationary pressures haven’t abated yet.
Bank stocks stage tepid recovery as Moody’s warns; 2nd attempt to sell SVB eyed Regional bank stocks are staging only a half-hearted recovery after a thorough shellacking on Monday,
as depositors fled for the safety of too-big-to-fail institutions, unimpressed by the Federal Reserve’s first attempt to calm nerves.
Moody’s put First Republic (NYSE:FRC) and a handful of other regional banks on watch for a credit rating downgrade overnight, citing their vulnerability to deposit runs,
something that appears to have been heightened by the age of smartphone banking. First Republic was up 22% in premarket trading, but that’s clawing back only a fraction of the 60%+ that was lost on Monday.
Stocks set to open higher, waiting for CPI U.S. stock markets are set to open a little higher but are essentially on hold ahead of the all-important CPI number.
With the Fed in blackout mode ahead of next week’s meeting, it will be down to private-sector economists to ruminate on what it means for interest rates.
U.K. jobs market cools; budget eyed The pound and euro gave up some of their recent gains against the dollar after data suggested that the British and euro zone economies,
too, may be cooling a little. U.K. wage growth slowed from record levels in February, while Spain’s inflation data came in below expectations.
too, may be cooling a little. U.K. wage growth slowed from record levels in February, while Spain’s inflation data came in below expectations.
That’s likely to be too little, too late to affect the ECB’s policy meeting this week (where a 50 basis point increase is still expected) and the Bank of England’s next week, where the market is split between a 25 and 50 basis point hike.