PREVIOUS TRADING DAY EVENTS 14 April 2023

Announcements 

The Retail Sales changes for March were released on the 14th of April at 1530, showing a fall for the second month. This signals that household spending is now decreasing as Americans face high inflation and rising borrowing costs. Sales fell more than the expected 0.4 decline.

The consumer price index report was released on Wednesday, showing that the core inflation which excludes food and energy costs and economists see as a better underlying measure remained high in March.

With high inflation still persisting, the Fed is going to increase rates at least one more time. Fed officials have indicated that soon they will pause their campaign of raising interest rates.

Source httpswww.bloomberg.comnewsarticles20230414usretailsalesdeclineforasecondmonthonfuelautosxj4y7vzkg

This April, U.S. UoM Consumer Confidence Index improves to 63.5 versus the expected 62. The nearterm inflation expectations jumped early in the month, by the most in nearly two years. Additionally, consumer sentiment rose too.

Higher interest rates mean higher difficulty in borrowing and buying. Consumers expect that prices will climb at an annual rate of 4.6 over the next year, according to the preliminary UoM Inflation Expectations figure for April.

Recent bank collapses were reported not to have much impact on sentiment.

Source httpswww.bloomberg.comnewsarticles20230414usyearaheadinflationviewsjumpbymostinnearlytwoyearsxj4y7vzkg…