The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) price index, has risen more than expected in March, indicating persisting inflationary pressures and pushing back expectations of a near-term rate cut by the Fed.
Private inventories have experienced a significant increase according to data released yesterday, leading analysts to speculate that this may have been influenced by frontrunning activities.
Australia’s consumer price index (CPI) fell to 3.6% in the first quarter of 2023, down from 4.1% in the previous quarter. However, this was above market forecasts of 3.4% and still outside the Reserve Bank of Australia’s (RBA) target range of 2-3%. The monthly CPI indicator accelerated to 3.5% in March from 3.4% in February. The monthly CPI excluding volatile items and travel rose to 4.1% in March from 3.9% in February. The RBA’s Trimmed Mean CPI, a measure of underlying inflation, increased by 4.0% year-on-year, the slowest rise in two years but still outside the target range.
CNBC’s ‘Mad Money’ host Jim Cramer has discussed potential signs of an impending economic slowdown and its potential impact on the financial markets. Cramer highlighted decelerating growth in economic indicators such as jobs and wages, as well as concerns about the housing market.
U.S. stocks traded higher towards the end of trading on Tuesday, with the S&P 500 gaining more than 1%, while the Dow and NASDAQ also rose. General Motors Company reported better-than-expected earnings for its fiscal first quarter, with quarterly sales growth of 7.6% year-on-year. Communication services and materials sectors were the leading and lagging sectors, respectively. In commodity news, oil traded up 1.8% while gold traded down 0.2%. European and Asian markets closed mostly higher, with the eurozone’s STOXX 600 rising 1.09% and Japan’s Nikkei 225 gaining 0.30%. Sales of new single-family houses jumped 8.8% in March, while the S&P Global services PMI and composite PMI fell to 50.9 and 50.9, respectively.
The French economic landscape presents a mixed picture, with the flash Composite PMI inching up while manufacturing activity declined and services activity expanded slightly in April. Overall, the Composite PMI edged higher to 49.90 points, marking its highest level since May 2023. However, the manufacturing sector saw a downturn, with the PMI declining to 44.90 points. In contrast, the services sector experienced a modest uptick, with the PMI rising to 50.50 points.
