Inflation data this week has meant that the main equity indices have responded positively. February has been a good month for stocks, despite the disappointment of early rate cuts largely disappearing off the radar towards the end of January.
This week’s agenda:
- Stocks rise after ‘no new bad news’ around inflation
- US inflation falls again
- Germany’s inflation is lower too
- Blended portfolios are in vogue
- The stock rally is only half over
- Green social sustainable bonds hit record issuance in 2023
- Performance of equity indices over the last month
- Summary
Stocks rise after ‘no new bad news’ around inflation
This was one of the headlines from Bloomberg this week following the release of the latest inflation data. In response, US equities ticked up slightly and US bond yields weakened.
US inflation falls again
US inflation fell to 2.4% in the year to January, matching the consensus amongst economists. The Personal Consumption Expenditures Index (PCE), the Federal Reserve’s (Fed) preferred gauge of price pressures, reinforces hopes of an early summer interest rate cut. The PCE reading was something of a relief in the US, but the story is looking different in Europe. The European economy is noticeably weaker, indicating the European Central Bank (ECB) may very well lower rates well before the Fed does.
Continues….
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