Macro News

This morning, oil prices are skyrocketing after OPEC and its allies shocked financial markets by announcing a production cut that will be greater than 1 million barrels per day. This move, which is being spearheaded by Saudi Arabia with a cut of 500,000 bpd, goes against the signals that the group has been sending in recent weeks, which suggested that output would remain stable.

Inflation, as measured by the Federal Reserve's preferred metric, the personal consumption expenditures (PCE) price index excluding food and energy, increased by 0.3% for the month of February, which was lower than the increase that had been anticipated. The deceleration resulted in the index increasing by 4.6% when compared to the same period a year earlier. This marked the slowest annual increase that has occurred since October 2021.

Personal incomes, meanwhile, increased by 0.3% (compared to the 0.2% increase that was anticipated), which was driven by increases in wages for workers in the services sector. On the other hand, after a significant increase in consumer spending in January, the month of February saw a more moderate increase of 0.2%, which was significantly lower than what was anticipated.

• Week Ahead:

• Tuesday: JOLTs, factory orders

• Wednesday: ADP employment change, balance of trade, S&P global composite/services PMIs, ISM services PMI

• Thursday: Challenger job cuts, initial jobless claims

• Friday: Non-farm payrolls, unemployment rate, average hourly earnings, consumer credit change