Say something hawkish I am giving up on you… | MarketTalk: What’s up today? | Swissquote

Show notes

Friday’s economic data was yet another proof of the diverging fortunes between the US economy and the rest of the developed world. In the morning, the UK announced that its retail sales slumped for the second straight year, fueling the worries of a mild recession in the UK this year. But in the afternoon, Michigan’s consumer sentiment index showed an advance to a more than two year high, the expectations improved more than expected, and falling inflation expectations were a cherry on top.
Strong US economic data has been tempering the expectation of a March rate cut from the Federal Reserve (Fed). But the Fed is still broadly expected to cut in May, if it doesn’t in March. The US yields are drifting gently higher from last year’s end levels. The rebounding yields weigh heavier on the S&P493; the equal weighted index continues to underperform the Magnificent 7.
The earnings season continues full swing with Netflix and Tesla due to announce their latest quarterly results this week.
The week’s economic calendar is also busy with major central bank meetings including the Bank of Japan (BoJ), the European Central Bank (ECB) and the Bank of Canada (BoC).
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