Daily Report

26 de Abril de 2024
Financial Markets | daily report 26.04.2024
  • In yesterday's session, US Q1 GDP data release centered the stage in financial markets as it showed that, despite the moderation in headline GDP growth (+0.4% q/q from 0.8% in Q423), the US economy remains robust. The 0.6% increase in private consumption and the acceleration of investment (1.3%) were the brighter news in GDP.
  • Also, financial markets eyed the increase in the GDP deflator (from 1.6% to 3.1%) and in core PCE (from 2.0% to 3.7%) and adjusted their expectations for the Fed's interest rate path ahead. In particular, the probability of having the first rate c ut in June decreased from 18% to 13%, and the probability of seeing 2 rate cuts in 2024 fell from 73% to 42%.
  • In this context, yields on sovereign bonds rose on both sides of the Atlantic and equities declined across the board. Elsewhere, the US dollar weakened against most advanced economies' currencies and the euro fluctuated above $1.07. Today, the focus will be on March's PCE inflation data.