The main overnight news on the data front was that China’s retail sales grew at the slowest pace since 2022 while industrial production accelerated, highlighting the unbalanced recovery of the world’s second-largest economy. Stocks in Asia have fallen, following on from stocks in the US finishing in the red. US markets were impacted by three Federal Reserve officials saying that the central bank should keep borrowing costs high for longer. As policymakers await more evidence, inflation is easing suggesting they are not in a rush to cut interest rates. These officials were the Cleveland Fed President, Loretta Mester, New York Fed President, John Williams and Richmond Fed President, Thomas Barkin, speaking separately Thursday, arguing that it may take longer for inflation to reach their 2% target.
In the currency world, the yen weakened against the dollar and opens at 155.75, mainly after news the Bank of Japan left bond buying amounts unchanged. However, one former BOJ chief economist suggested the central bank may raise interest rates three more times this year, with the next move coming as early as June. I still think we will see 160 before 150. As for commodities they were broadly higher. WTI opens at 79.50, Gold opens at $2384 and Silver continues to push that resistance at $30. Bitcoin trades at $65,600 and Ether at $2943.
As for the data we have Eurozone CPI at 10am and 5 speeches to listen out for - ECB's De Guindos, BoE's Mann and then this afternoon we hear from Kashkari, Waller and Daly from the Fed.
