Concerns about a slower rate cut are back, stocks mixed today

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Monday’s US ISM industrial index beat expectations for both overall activity and price dynamics. It hit both bonds and stocks. The effect on stocks is not great and some markets are only reacting today. Other agenda items are taking center stage, but it looks like the topic of less dovish Fed policy will remain on the table.

Several representatives of the Fed will speak later in the afternoon and evening, and in recent days they have again begun to indicate that there is no rush to cut rates. In addition, preliminary inflation data from the German federal states is released, and the subsequent figure for Germany will be an indication of inflation in the eurozone for March.

The movement of shares in Europe is mixed in the morning, with the slightly red DAX and the falling Spanish market spoiling the balance. American futures are also in the negative so far. Longer European bond yields jumped higher, American ones are only holding positions after yesterday’s increase. Yesterday’s data added strength to the dollar and its exchange rate against the euro moved to 1.0740, where it is consolidating today.

The koruna weakens slightly in the morning to 25.33 per euro. The domestic purchasing managers’ index beat expectations at 46.2. In addition, according to the minutes of the last meeting of the CNB, the majority of the bank board chooses a more cautious approach with the easing of monetary policy. On the other hand, the expected trajectory of Western interest rates shifted higher, which is unfavorable for the koruna.

Overview of exchange rates of the most important currencies today at 11:38 CET:

CZK/EUR 25.3342 0.1660 25.3445 25.2632
CZK/USD 23.5925 0.2252 23.5960 23.5420
HUF/EUR 394.7276 0.0335 395.5794 394.0413
PLN/EUR 4.2941 0.0335 4.2994 4.2879
CNY/EUR 7.7701 0.0128 7.7732 7.7587
JPY/EUR 162.8555 -0.0396 162.9727 162.6205
JPY/USD 151.6750 0.0155 151.7955 151.5540
GBP/EUR 0.8544 -0.1834 0.8562 0.8540
CHF/EUR 0.9759 0.4560 0.9761 0.9713
NOK/EUR 11.7033 -0.5769 11.7814 11.6983
SEK/EUR 11.5695 -0.3243 11.6084 11.5646
USD/EUR 1.0737 -0.0568 1.0743 1.0725
AUD/USD 1.5366 -0.2791 1.5425 1.5358
CAD/USD 1.3560 -0.0932 1.3585 1.3557

The article is in Czech

Tags: Concerns slower rate cut stocks mixed today

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