A rally in US equities stalled on Friday ahead of key economic data this week including the final reading of US Q4 GDP and PCE inflation.
United States
The S&P500 finished -0.14% lower on Friday along with the Dow Jones -0.77% and Russell 2000 -1.27% while the Nasdaq Composite edged up 0.16%. All equity indices finished the week higher, led by the S&P500 and Nasdaq Composite up 2.29% and 2.85% respectively.
There is little economic data on Monday, although Tuesday will bring the latest durable goods orders for February expected to show a 1% increase. This release will be followed by consumer confidence for March. Thursday will bring the final reading of Q4 GDP expected to show the economy expanded at a 3.2% annualised rate, having moderated from 4.9% in Q3. Friday will round the week off with consumer sentiment for March and PCE inflation data for February. For the 12 months to February, core PCE is expected to have risen 2.8% and headline prices rose 2.4%, both unchanged from January.
Europe
European equities were mixed on Friday, although mostly higher for the week. The Euro Stoxx 600 edged -0.03% along with the CAC -0.34% while both the FTSE100 and DAX have risen 0.61% and 0.15% respectively. Ahead this week, German consumer confidence for April will be released on Tuesday. Later in the week, UK GDP for Q4 2023 and German unemployment are the highlights on Thursday. The week will finish with French and Italian inflation data for March.
Australia
The ASX is expected to edge up this morning with ASX200 futures finishing 7 points or 0.09% to 7,829. Ahead this week, Tuesday will see the latest consumer confidence for March followed by the latest economic leading index for February on Wednesday. The highlight on Wednesday will be the latest monthly inflation estimate for February, expected to show a 3.6% rise over the 12 months. Thursday will see the latest round of housing credit data for February and consumer inflation expectations for March.
Commodities
Oil prices finished lower on Friday with both WTI and Brent -0.54% and -0.41% lower respectively. Iron ore futures in Singapore were -1.49% lower on Friday and are little changed at US$108.25 this morning, copper also finished -1.25% lower on Friday. Gold was also -0.73% lower at US$2,165 an oz, along with silver -0.28% and Bitcoin -2.99%.
Economic Calendar
25th March 2024
ECB Lagarde Speech 21:00
Fed Bostic Speech 23:25
Chicago Fed National Activity Index (MoM Feb) 23:30
US New Home Sales (MoM Feb) 01:00
Fed Cook Speech 01:30
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
