Good Morning Traders! This Friday we get German HICP, along with comments from ECB's Muller.
Here is what to expect.
Sentiment
According to a survey, observers of the Bank of Japan are becoming more confident that the bank will meet its inflation objective and that policymakers will terminate the world's final negative rate regime by April.
The Bank of Japan faces a more challenging policy route as it moves closer to eliminating the world's final negative rate regime, given that Japan's economy shrank at its fastest rate since the pandemic's peak.
Due to growing worries about a worldwide glut, oil prices were on track for their longest weekly losing run since 2018. Traders were sceptical that OPEC+'s further supply curbs would be successful. Growing oil demand in China is expected to slow in 2024 as the recovery wanes.
A central bank official stated that while most households are still robust, a growing percentage of mortgage holders in Australia are under extreme financial stress due to rising interest rates and inflation.
The riskiest credits are benefiting from a rally in the US debt markets, which has caused the extra yield that investors require to purchase speculative-grade bonds rather of Treasuries to contract to its lowest level in 19 months.
According to JPMorgan, reduced bond yields and comparatively low default rates would propel US corporate bond returns into the upper single digits for the upcoming year.
Docket
02:00 AM ET
German HICP Final YoY
Median Forecast 2.3% | Prior 2.3% | Range 2.3%/2.3%
German HICP Final MoM
Median Forecast -0.7% | Prior -0.7% | Range -0.7%/-0.7%
Speakers
02:35 AM ET
ECB's Muller Speaks
Good Luck Today Traders!
