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HomeUncategorizedMarket Watch: US CPI Figures, China Downgrade, and Delta's Results Drive Market...

Market Watch: US CPI Figures, China Downgrade, and Delta’s Results Drive Market Trends.

Market Watch:- Dow futures contract increased by 40 points, S&P 500 futures rose by 5 points, and Nasdaq 100 futures rose by 30 points.

Federal Reserve speakers discuss interest rate cuts, Taiwan Semiconductor Manufacturing hits new high, and HSBC faces pretax loss as Argentina unit sells.

US CPI Data

The latest reading of U.S. consumer prices is due, and markets are uncertain about when the Federal Reserve will start cutting interest rates. Expectations for rate cuts this year are around 60 basis points, compared to 150 basis points at the start of 2024. A strong March CPI number could push back the start of the rate-cutting cycle to July. The release of minutes from the last Fed meeting is also of interest.

China Growth outlook cut

Fitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.

Delta Air earnings

Delta Air Lines is starting the airline reporting season, with analysts anticipating higher fuel prices due to Middle East tensions. Despite strong demand trends, analysts are optimistic about the growth of premium revenue and card remuneration. Delta’s first-quarter profit forecast is expected to range between 25 cents to 50 cents per share, with a 2024 profit per share forecast of $6 to $7.

Economic Calendar

  • 7:00 MBA Mortgage Applications
  • 8:30 Consumer Price Index
  • 8:45 Fed’s Bowman Speech
  • 10:00 Wholesale Inventories (Preliminary)
  • 10:30 EIA Petroleum Inventories
  • 12:45 PM Fed’s Goolsbee Speech
  • 1:00 PM Results of $39B, 10-Year Note Auction
  • 2:00 PM FOMC Minutes
  • 2:00 PM Treasury Statement

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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.

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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

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