2024-05-16 12:30:00 ET
Summary
- The move shows central banks aren’t waiting for the Federal Reserve to cut rates, and it indicates confidence that the European Central Bank will cut in June.
- The Eurozone Services Purchasing Managers’ Index hit an 11-month high in April, and the services sector is also showing strength in China.
- Companies’ comments this earnings season indicate that lower-income households in the US are under significant pressure.
Last week brought good news for the markets with another central bank rate cut and positive economic signs emerging in Europe and China. This was tempered by more shipping disruptions in the Red Sea, which could have an impact on inflation, as well as further signs that US lower-income consumers are under increasing pressure. Here are my key takeaways on the latest news.
Central bank watch: Momentum builds for rate cuts
Last week, we saw the second major Western developed central bank cut rates this cycle – Sweden’s Riksbank. This is the first time in this century that the Riksbank has cut rates before the US Federal Reserve (Fed) following a tightening cycle....
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Sweden's Rate Cut Heightens Anticipation For The ECB And Fed