Daily update
Daily update
- The Bank of Japan continued its policy of masterful inactivity—leaving everything but its inflation forecasts unchanged (headline inflation forecasts were revised lower). Investors are focusing on policy meetings after the spring pay round as being the earliest chance of a policy change. The ECB bank lending survey is due, and relevant to future policy discussions there.
- The US and the UK have launched further military strikes against Houthi positions in Yemen—the eighth set of strikes in 12 days. The US reports that this has reduced the frequency and strength of Houthi attacks on commercial shipping. Economically, that only matters if shippers (and their insurers) change their behavior, which does not seem to be the case so far.
- Various surveys are taking up space required for other purposes. Business sentiment comes in the form of the Philly Fed and Richmond Fed surveys, both likely to be subject to the polarizing influence of the rather feral state of US politics. Eurozone consumer confidence is due.
- China’s Premier Li reportedly urged “forceful action” to raise equity prices (economically, high equity prices can be a bad thing—fair equity prices are what is needed). The effectiveness of this depends on whether equity prices are low because of speculation, or economic fundamentals.