European stocks and US futures advanced on Monday morning, following last week’s sour risk sentiment and high volatility.
Markets began to realise that the Fed hasn’t won the war with inflation, the however US Dollar remains resilient against its G7 rivals.
Markets are now pricing US rates to peak at 5.4% this year, compared with about 5% in January, as an acceleration in the Federal Reserve’s preferred inflation gauge crushed hopes for rate cuts anytime soon. For the week ahead market focus will be on US durable goods and PMI data. On the European front all eyes will be on Eurozone CPI (consensus 8.2% YoY) and employment data.