April 8, 2024
United States:
Traders Favor Two Fed Cuts in 2024 With US Rates at Year’s Highs
Traders’ conviction on three quarter-point interest-rate cuts from the Federal Reserve this year is quickly dissipating, with markets now favoring just two reductions.
Interest-rate swaps imply around 60 basis points of US monetary easing this year, which means two cuts is the most likely outcome with the first expected by September, according to Bloomberg pricing. On Friday, the chance of a third cut was still above 50%.
Europe:
ECB Jostling Over Back-to-Back Summer Cuts Has Already Begun
European Central Bank interest-rate setters are starting to position themselves for the next debate as a first cut in June becomes increasingly certain and inflation continues to slow.
The question the members of the Governing Council eventually need to settle is whether to follow their initial foray into monetary easing with another move at their July policy meeting — or wait at least until September.
Asia:
China’s Economy to Grow 5.3% This Year as Property Sector Stabilizes, Report Finds
China’s economy is set to expand 5.3% this year as the property sector stabilizes and external demand improves, according to the ASEAN+3 Macroeconomic Research Office, helping to lift growth in the region.
A gradual property sector recovery in China amid ongoing policy support would boost real estate investment, generating spillovers for the rest of the region, the Singapore-based group said in a report Monday.
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