Market movers ahead
- US PCE core inflation is expected to remain at 1.9% y/y i.e. below the Fed’s 2% target.
- We have a host of Fed and ECB speakers giving their verdict on the recent dovish twist by the two central banks.
- On Brexit, PM Theresa May is expected to bring back her deal for a vote in the House of Commons on Tuesday or Wednesday following the EU’s decision to extend Article 50 to 12 April unconditionally.
- High-level trade talks between the US and China will resume in Beijing next week with US Trade Representative Lighthizer and Treasury Secretary Mnuchin set to lead a US delegation in talks with China’s top negotiator Vice-Premier Liu He and his team.
Weekly wrap-up
- The Fed joins the group of dovish global central banks, basically going on hold for the rest of 2019. The Bank of England also remained cautious amid Brexit uncertainty.
- On the other hand, Norges Bank went against the tide, raising its benchmark rate and signalling two additional rate hikes this year.
- The EU Council grants the UK another lifeline, providing a very short unconditional extension of the Brexit deadline by two weeks to 12 April with a possible extension to 22 May if the House of Commons passes the Withdrawal Agreement before that.
- With the dovish global central banks and weak economic numbers, global yields continue to fall.
