- Underlying theme of trimming rate cut expectations remains, with market pricing for BoE rate cuts pared once again, after Haskel said more evidence on reduced inflation persistence needed to stop voting for rate hikes.
EU mid-market update: Earnings from mega-caps like LVMH and Intel remain in focus; ECB speak sees rate cuts weighted towards back half; FOMC and BOE decisions next week.
- Stocks move higher and bond yields lower as interest rate expectations are further dialed in after Fed Waller yesterday spoke about seeing case for rate cut in several months if inflation takes on course, suggesting a move in H1 2024, alongside a significant drop in German states and Spain’s CPI readings, ahead of Germany’s national reading at 08:00 ET.