PREVIOUS TRADING DAY EVENTS 03 April 2023

Announcements 

The Organisation of Petroleum Exporting Countries and Allies OPEC unexpectedly announced output cuts, causing a boost in expectations of rising inflation affecting the world economy. Along with Russia, they pledged to make cuts exceeding 1 million barrels a day, starting next month and lasting until the end of the year. Price forecasts were lifted for this year and 2024. U.S. oil futures are also up.

After the banking sector turmoil, the price had already started to rise again, following supply disruptions. As a result, this surprise intervention pushed the price significantly higher. While Central banks are trying to fight inflation with rate hikes, rising oil prices threaten to add to inflation creating stress to the banks efforts.
Source httpswww.bloomberg.comnewsarticles20230402oilsurgesafteropecmakesunexpectedcrudeproductioncut?srndmarketsvp

The Swiss Consumer Price Index CPI increased by 0.2 in March 2023 compared to the previous month. Even though inflation eased by more than expected last month, the central bank will likely increase interest rates again in June.

Looking at these numbers, the Swiss National Bank is still not done, but can take a breath, said Karsten Junius, chief economist at Bank J Safra Sarasin Ltd. in Zurich. A further interestrate hike in June will come, but officials can now leave it at 25 basis points.

The core reading shows that price pressures are significantly lower in…