Good morning!
The US inflation rate came in at 2.7% yesterday, as expected.
Today we have a few pieces of macro news but the most important is probably the ECB rate decision at 13:15 GMT.
However, a 25 basis point cut is expected with near-certainty and almost nobody will be surprised if or when that is announced.
The rate is expected to fall from 3.25% to 3%, which will be the fourth cut of the year. Here is a 3-year chart of this rate:
(Source of economic charts: TradingEconomics.com)
Cuts are expected to continue in 2025, taking the deposit facility all the way down to 1.75% by the end of next year.
The ECB targets an inflation rate of 2% over the medium term. It's currently on target:
Eurozone equities may not enjoy the prestige or the performance of their US counterparts, but I don't think that low rates can be blamed for this: the ECB has been very supportive, and it's likely to remain supportive for the foreseeable future.1pm: We've wrapped up the report now, enjoy the rest of your day!
Explanatory notes
A quick reminder that we don’t recommend any shares. We...
