April 29, 2024
United States:
Fed Rate-Cut Debate Shifts From When Toward If on Inflation Data
The debate for the Federal Reserve is beginning to shift from how many times to cut interest rates this year to whether to cut them at all in 2024.
With policymakers widely expected to hold rates steady at a more than two-decade high at the conclusion of their meeting Wednesday, so much of the focus will be on any pivot in the tone of the post-meeting statement and Chair Jerome Powell’s press conference.
Europe:
Germany’s Economy Shows Signs of Life But Industry Is Struggling
Germany’s economic prospects are looking up after two grueling years of near-zero growth. The consumer-led revival, though, papers over enduring industrial weakness for which there’s no quick fix.
Data this week signaled the fledgling recovery in Europe’s largest economy is gaining momentum — especially in service sectors like tourism and hospitality. The mood among businesses is perking up as confidence builds that a widely anticipated winter recession has, in fact, been avoided.
Asia:
Chinese Bonds Dodge Global Debt Selloff as Yield Gap Widens
China’s sovereign bonds have once again dodged a rout in the global debt market, showcasing one of their frequently cited attractions for investors — a low correlation with their worldwide peers.
The nation’s benchmark 10-year yield has dropped about 23 basis points this year, while similar-maturity US Treasury yields have jumped 78 basis points. China’s outperformance is being driven by a differing economic cycle: the central bank is looking to ease policy to support growth, while policymakers in much of the world keep interest rates elevated to suppress inflation.
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.