Weekly Market Recap (08-12 April)

This week witnessed significant developments in various global markets. Here is a roundup of the major events that unfolded:

Japan

The Japanese February wage data met expectations, with the Average Cash Earnings Year-on-Year (YoY) at 1.8% versus the expected 1.8%, and Real Wages YoY at -1.3% compared to the anticipated -1.4%. These figures provide insights into the state of the Japanese economy and its impact on consumer spending.

Switzerland

In Switzerland, the unemployment rate experienced a slight uptick in March. The unadjusted rate reached 2.4%, in line with expectations, while the adjusted rate stood at 2.3%, slightly higher than the anticipated 2.2%. The employment landscape in Switzerland is closely monitored for its implications on the overall economic health of the country.

New York Fed

The New York Federal Reserve released the March inflation expectations survey, revealing that one-year inflation held steady at 3.0%, while three-year inflation expectations rose to 2.9%. Additionally, the survey indicated a 2.6% five-year inflation rate. These findings offer valuable insights into the anticipated trajectory of inflation and its potential impact on consumer behavior and monetary policy.

Federal Reserve

Fed’s Goolsbee, a dove and non-voting member, reiterated the strength of the economy and the functioning of the Fed’s lender of last resort system. While acknowledging concerns about the economy, Goolsbee emphasized the need for a balanced approach in monetary policy.

Fed’s Kashkari, a hawk and non-voting member, addressed the inflation goal and the crypto market. He highlighted the importance of combatting inflation and expressed skepticism about the practical utility of cryptocurrencies. These remarks shed light on the Fed’s stance on inflation management and its perspective on emerging financial technologies.

Bank of Japan (BoJ)

BoJ Ueda provided insights into the central bank’s outlook, indicating that Japan’s economy is exhibiting signs of weakness but is on a path of moderate recovery. Additionally, Ueda emphasized the significance of wage growth and inflation dynamics, underscoring the central bank’s approach to policy guidance and its focus on economic and price developments.

The global financial landscape is influenced by a myriad of factors, and these updates offer valuable perspectives on the economic conditions and policy considerations across different regions. As market participants navigate the complexities of the financial world, staying informed about these developments is essential for making well-informed decisions.