Previous Trading Days Events 03.04.2024

According to the CPI reports yesterday, Eurozone inflation fell unexpectedly last month. Consumer price growth slowed to 2.4 in March from 2.6 a month earlier, defying expectations for a steady rate as food, energy and industrial goods prices all pulled the headline figure lower.

Underlying inflation meanwhile fell to 2.9 from 3.1, coming below expectations for 3.0, data from Eurostat.

Inflation has been on a steady downward path for more than a year but has fallen more quickly since last autumn than many had predicted, shifting the debate to just how soon and how fast the ECB will unwind record rate hikes.

Meeting next week, the central bank is expected to acknowledge the improved outlook but policymakers are unlikely to cut rates straight away.

Source httpswww.reuters.commarketseuropeeurozoneinflationunexpectedlyeasesboostingratecutcase20240403

U.S. services sector growth slowed further in March. The Institute for Supply Management ISM said on Wednesday that its nonmanufacturing PMI fell to 51.4 last month from 52.6 in February. It was the second straight monthly decline in the index since rebounding in January.

The PMI remains consistent with an economy that continues to expand, though at a moderate pace.

Services are the main driver of inflation, via higher wages. With demand slowing, so did services inflation. Data last week showed services inflation excluding energy and housing cooling considerably in February…