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Eurozone Inflation Takes Center Stage
Finalized Eurozone inflation figures will require consideration on Wednesday, April 16, as the ECB policy decision looms. According to preliminary data, the annual inflation rate softened to 2.2% in March, down from 2.3% in February. A downward revision, nearer to the ECB’s 2% target, could raise expectations of multiple ECB rate cuts. Conversely, a higher print could suggest a post-April pause on rate cuts.
US Markets Dip on Tariff and Economic Uncertainty
US equity markets slipped on Tuesday amid tariff uncertainty as investors awaited details of Trump’s national security tariffs, targeting semiconductors and electronics. The Nasdaq Composite Index dipped 0.05%, while the Dow and the S&P 500 fell 0.38% and 0.17%, respectively.
US economic data, including a larger-than-expected rise in the NY Empire State Manufacturing Index, had a muted impact on markets. Markets remained focused on trade risks and implications for global growth and central bank policy.
Will US Retail Sales Trigger Recession Fears?
On Wednesday, April 16, US retail sales data will give insights into the US economy, given private consumption contributes over 60% to US GDP. Economists expect retail sales to jump 1.3% month-on-month in March, up from a 0.2% rise in February.
A stronger-than-expected print would ease fears of a US recession, potentially boosting demand for risk assets. However, an unexpected fall in sales may fuel speculation about a US recession, potentially impacting risk sentiment.
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