Friday Afternoon Market Recap
Friday Afternoon Market Recap:
U.S. equity markets finished higher.
Economic Indicators
- S&P Global's preliminary composite Purchasing Managers' Index ("PMI") rose to 53.3 in March, beating expectations of 49.4 and marking the second straight month of expansion in both manufacturing and services.
Macro Commentary
- Banks stocks fell and credit default swaps rose on concerns that continued interest-rate hikes could further reduce liquidity and put more stress on financial institutions' balance sheets.
- Federal Reserve Bank of St. Louis President James Bullard raised his forecast for peak interest rates this year and asserted that the ongoing banking crisis is overblown.
Within the S&P 500 Index, nine of 11 sectors finished higher...
European equity markets finished lower.
Economic Indicators
- Spanish Producer Price Index annual growth for February eased to its lowest rate in nearly two years thanks to falling energy costs.
- S&P Global's preliminary Eurozone composite PMI for March showed business activity unexpectedly accelerating as consumer demand for services outpaced the decrease in demand for goods.
Macro Commentary
- Bank of England Governor Andrew Bailey warned that if firms continue to raise prices, further rate hikes by the central bank would be inevitable.
- European Union regulators may be reconsidering how financial institutions should manage liquidity risk after recent policy tightening caused banking stress.
Asian equity markets finished lower.
Economic Indicators
- The Japanese Consumer Price Index ("CPI") eased in February, taking pressure off the central bank to raise interest rates.
Macro Commentary
- South Korean Finance Minister Choo Kyung-ho said the government seeks to improve relations and trade with Japan to support economic growth.
- Chinese Foreign Minister Wang Yi called on Europe to support Beijing's peace proposal in Ukraine, a measure most Western governments have rejected.
- China's Banking and Insurance Regulatory Commission said it would meet with insurers to discuss debt-asset risk related to global liquidity problems.
(Narratives written as of local market close.)
Asset Snapshot
Key events to watch next week...
Monday:
Eurozone – M3 Money Supply for February (4 a.m.)
Germany – Ifo Business Climate Index for March (4:30 a.m.)
Dallas Fed Manufacturing Survey for March (10:30 a.m.)
ECB's Schnabel Speaks (11 a.m.)
BOE's Bailey Speaks (1 p.m.)
Fed's Jefferson Speaks (5 p.m.)
Tuesday:
FHFA Home Price Index for January (9 a.m.)
S&P CoreLogic Case-Shiller U.S. National Home Price Index for January (9 a.m.)
ECB's Lagarde Speaks (9:15 a.m.)
Fed's Barr Speaks (10 a.m.)
Wednesday:
Australia – CPI for February
Germany – GfK Consumer Confidence for April (2 a.m.)
MBA Mortgage Applications (7 a.m.)
Fed's Barr Speaks (10 a.m.)
Pending Home Sales for February (10 a.m.)
ECB's Schnabel Speaks (4:45 p.m.)
Thursday:
Spain – CPI (Preliminary) for March (3 a.m.)
Germany – CPI (Preliminary) for March (8 a.m.)
Fed's Barkin Speaks (12:45 p.m.)
Fed's Collins Speaks (12:45 p.m.)
Fed's Balance Sheet Update (4:30 p.m.)
Friday:
China – Official Manufacturing, Non-Manufacturing, Services PMI for March
Japan – Retail Sales for February
Eurozone – CPI (Preliminary) for March (5 a.m.)
Personal Income and Spending for February (8:30 a.m.)
PCE for February (8:30 a.m.)
ECB's Lagarde Speaks (11 a.m.)
Fed's Williams Speaks (3 p.m.)
Fed's Waller Speaks (4 p.m.)
Fed's Cook Speaks (5:45 p.m.)
Have a great weekend!