Daily Report

2 de Maio de 2024
Financial Markets | daily report 02.05.2024
  • At its meeting yesterday, the Federal Reserve kept interest rates on hold at 5.25-5.50%, as expected, and the Fed's policy statement kept its economic assessment and policy guidance without changes. Powell signaled the next move is unlikely to be an interest rate hike as the Fed is still leaning towards an eventual cut, despite needing greater confidence to do so.
  • Markets were relieved at the reassurance the Fed is unlikely to hike rates, and treasury yields fell mostly at the shorter end of the curve, as markets moved to price in the first, and only interest rate cut of 2024, between September and November. Equities ended lower amid a volatile session as mixed corporate earnings drove sentiment.
  • Elsewhere, markets were closed in the euro area due to festivities following the release of important macro data on Tuesday. In particular, Q1 GDP grew 0.3% (qoq) while April inflation held steady at 2.4% and core inflation fell from 2.9% to 2.7%, signaling economic activity is starting to pick up and inflation is closer to reaching its target.