Markets eye ECB and BOE after SNB rate cut

Wall Street closed lower overnight as big tech faces challenges

By Nadia Elbilassy | @Nadia Elbilassy | 26 March 2024

Market open
  • Expectations for rate cuts by ECB and BoE in June surged following SNB's rate reduction.

  • Bank of England Governor Bailey hinted at potential rate reductions this year.

On the Market Watch:

Oil Prices

Oil prices climbed higher on Monday, fueled by increasing speculation of reduced global crude supplies. Reports suggested that Russia plans to decrease oil output, coinciding with ongoing targeting of the country's refineries by Ukraine.

WTI hovered near $81 while Brent was last seen near $85.

Rate Cuts

Expectations for a rate cut by the European Central Bank and the Bank of England in June have significantly increased. This surge comes after the Swiss National Bank took the lead among major central banks by lowering borrowing costs last week.

Additionally, Bank of England Governor Andrew Bailey indicated to the Financial Times that rate reductions were being considered within the scope of possibilities for this year.

Several countries including France, Italy, Belgium, and Spain are set to release their respective consumer price data, to examine inflation for the region. These releases will be followed by the overall eurozone Consumer Price Index (CPI) report scheduled for next week.

Wall Street

The Dow Jones Industrial Average dropped by 162 points, or 0.4%, while the S&P 500 declined by 0.3%, and the NASDAQ Composite fell by 0.3%.

Asian stocks tracked Wall Street and ended lower while European equities experienced a slight decline, while US futures showed a slight uptick following the S&P 500 Index overnight Meanwhile, Treasuries remained relatively unchanged.