George Buckley, Chief UK and Euro Area Economist, discusses upcoming central bank meetings in Europe and Asia. They analyze key market drivers, including US inflation numbers and political events in France. The podcast covers economic indicators, PMIs, and challenges facing the Chinese economy.
Central banks in Europe and Asia face decision time with upcoming meetings, likely to hold rates.
US economic data impacts market movements, with speculations on easing policies and varied FOMC rate cut expectations.
Deep dives
Macron Calls for Snap Parliamentary Election
President Emmanuel Macron's alliance faced a significant defeat by the populist right in European Union elections. Macron announced a snap parliamentary election, citing the need to respond to the electoral results. The National Rally Party, led by Marine Le Pen, is poised to secure a record 32% of the vote, double the support for Macron's coalition.
US Economic Data and Federal Reserve Response
US economic data, including Core CPI and FOMC projections, played a key role in market movements. The weaker than expected Core CPI numbers led to speculations about easing policies. FOMC participants showed varying expectations for rate cuts, with a shift towards one cut in 2024. The market reacted to these numbers, with a mix of hawkish and dovish sentiments.
Upcoming Events: Europe Focus and Central Bank Meetings in Asia
Events in Europe, such as UK CPI and European PMIs, will shape economic narratives. Expectations for UK CPI include a fall in inflation rates, potentially impacting the Bank of England's decision. Central bank meetings in Europe like the SNB and Norges Bank are anticipated, with some leaning towards rate cuts. In Asia, China shows signs of economic recovery, Indonesia might have an interest rate hike, and the RBA is likely to maintain its rate amidst mixed economic indicators.
Hear from George Moran, Host & European Economist and George Buckley, Chief UK and Euro Area Economist, as they discuss the key drivers for global markets over the coming week. It’s decision time for central banks with three meetings in Europe and three in Asia, although ultimately most central banks are likely to remain on hold.
Chapters: U.S. (01:14), Europe (07:06), Asia (14:09)
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