Pride and prudence expected in UK budget | – #Pride #prudence #expected #budget

From Ankur Banerjee Europe and an outlook on the day ahead in global markets

A relief rally in the market will be tested as UK finance minister Jeremy Hunt delivers the UK’s spring budget, with business lobbies clamoring for sweeteners as he tries to jump-start the world’s sixth-largest economy.

Past Prime Minister Prepared last year after Liz Truss’ mini-budget that rocked UK markets in September, Hunt will speak at 1230 GMT and the big tax expected to avoid cuts or cost increases.

That could reduce risk appetite for investors after a rally of relief from China’s economic activity data showing a gradual but uneven recovery on Wednesday. Tuesday’s inflation Rising expectations that the Fed will not return to repeated hikes after its data also helped boost sentiment.

The market is now pricing in about an 80% probability of a 25 bps increase, compared to a 70% probability of a 50 bps increase last week. Some in the market still hope the Fed will keep interest rates on hold. of the day Retail sales data will shed more light on the state of the economy later in the day.

Latest UpdatesBonds and Bonds Category ECB bank will stick to high interest rates despite the crisis, source says image article World category House sales in Turkey fell 18% year-on-year in February -stats institute, image with article

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Europe stocks may struggle to continue the rally with futures indicating the market is bound for a slightly higher open.

As traders believe SVB’s worst collapse is over as contagion fears grip the market ease bank shares recovered some of their steep losses.

Attention in the corporate world will turn to Credit Suisse after the Swiss bank said it had identified “material weaknesses” in its internal controls over financial reporting.

In the meantime, FacebookThe parent company of Meta Platforms this year 10announced that it would cut ,000 jobs, making it the first Big Tech company to announce a second round of massive layoffs.

Reuters graphics

Key developments that could affect the markets on Wednesday:

Economic events: Sweden and France for inflation data

Eurozone industrial production data; Great Britain budget

Reporting by Ankur Banerjee; Edited by Muralikumar Anantharaman

Our standards: Thomson Reuters Trust Principles.

2023-03-15 12:06:26
Source – reuters

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