Friday Afternoon Market Recap
Friday Afternoon Market Recap:
U.S. equity markets finished lower.
Economic Indicators
- University of Michigan Consumer Expectations Survey for March showed inflation worries continue to subside. But now, recession fears are beginning to take its place.
- Factory output increased for a second straight month, which provided the manufacturing sector some relief, even if temporary.
Macro Commentary
- Former Treasury Secretary Lawrence Summers said that the central bank shouldn't be swayed from its original tightening game plan to combat high inflation amid the recent panic in the banking sector.
- Following the uncertainty in the space, the Federal Reserve's discount window has seen borrowing hit an all-time high. Money-market funds have seen the largest inflows since 2020.
Within the S&P 500 Index, all 11 sectors finished lower...
European equity markets finished lower.
Economic Indicators
- Bank of England's Consumer Inflation Expectations for February fell according to the central bank's latest survey and ahead of next week's monetary policy decision.
Macro Commentary
- European Central Bank ("ECB") President Christine Lagarde said that it's impossible to determine the future of rate paths in response to the removal of forward guidance.
- Following the removal of forward guidance from the ECB, combined with the recent turmoil in the banking sector, analysts are increasingly convinced that the central bank's tightening policy may come to an end sooner than later.
Asian equity markets finished higher.
Economic Indicators
- None.
Macro Commentary
- Japan lifted export controls on key materials used to produce semiconductors from South Korea as the two nations continue to repair relations.
- The Treasurer of Australia, Jim Chalmers, said that the administration is closely monitoring the global financial markets. And despite interventions by U.S. and Swiss officials, vulnerability and uncertainty remain.
- The People's Bank of China cut the amount of cash that banks must hold as reserves – or the reserve ratio – to help ensure ample liquidity and promote a faster economic recovery.
(Narratives written as of local market close.)
Asset Snapshot
Key events to watch next week...
Monday:
Germany – PPI for February (3 a.m.)
ECB's Lagarde Speaks (10 a.m.)
ECB's Lagarde Speaks (2 p.m.)
Tuesday:
South Korea – PPI for February
Reserve Bank of Australia Policy Meeting Minutes
Germany – ZEW Indicator for Economic Sentiment Survey for March (6:05 a.m.)
ECB's Lagarde Speaks (8:30 a.m.)
Canada – CPI for February (8:30 a.m.)
Wednesday:
U.K. – CPI, PPI for February (3 a.m.)
ECB's Lagarde Speaks (4:45 a.m.)
ECB's Lane Speaks (5:30 a.m.)
ECB's Panetta Speaks (5:45 a.m.)
FOMC Policy Rate Decision (2 p.m.)
Fed's Powell Speaks (2 p.m.)
Thursday:
Bank of England Policy Rate Decision (8 a.m.)
Bank of England Policy Summary and Meeting Minutes (8 a.m.)
Chicago Fed National Activity Index for February (8:30 a.m.)
ECB's Lane Speaks (11 a.m.)
Eurozone – Consumer Confidence Indicator for March (11 a.m.)
Kansas City Fed Manufacturing Index for March (11 a.m.)
Friday:
Japan – CPI for February
Japan – Markit/JMMA PMI Manufacturing Survey for March
Spain – PPI for February (4 a.m.)
Eurozone – S&P Global Services, Composite PMI (Preliminary) for March (5 a.m.)
U.K. – CIPS Services, Composite PMI (Preliminary) for March (5:30 a.m.)
S&P Global Services, Composite PMI (Preliminary) for March (9:45 a.m.)
BOE's Mann Speaks (12 p.m.)
ECB's Schnabel Speaks (Sunday)
Have a great weekend!