Read on the Trading Floor - 12 April 2024
Today’s focus… street forecasts, earnings, commodities and much more
Macro Themes At Play
Theme 1 - The street changes their Fed forecasts
Theme 2 - Soft launch to Q1 earning season
Theme 3 - Commodities ignore USD strength
Theme 4 - Week Ahead Previews
Further reading and listening of note
Theme 1 - The street changes their Fed forecasts
Economists on the street have started to mark to market their expectations for the Fed cycle as the US economy simply does not need rate cuts given the resilient labour market, easy financial conditions, wealth effect from the AI fueled equity rally, the 5.25% coupon the US Treasury now pay savers, the last mile of disinflation stalling, 3 hot inflation prints in a row, rise in commodity prices and heightened freight costs.