Financial News Summary -March 17, 2024

USA

- Economic Growth: Q1 2024 annualised GDP growth was 1.6%, down from 3.4% in Q4 2023.

- Jobs: The unemployment rate increased to 3.9% in April 2024 from 3.8% in March 2024. Despite the rise, the job market remains relatively tight.

- Inflation: CPI dropped slightly to 3.4% year-over-year in April from 3.5%, showing the first slowdown in six months.

- Federal Reserve: Interest rates remain unchanged, but the Fed signaled prolonged high rates to curb inflation. Bond yields have risen to around 4.38% for the 10-year Treasury, reflecting tighter monetary policy.

- Debt Securities: Higher yields are expected to impact corporate debt refinancing, with yields on 10-year Treasuries reaching 4.38%.

UK

- Economic Growth: The UK economy grew by 0.6% in Q1 2024, driven by consumer spending and exports.

- Jobs: The unemployment rate rose to 4.3% from January to March 2024, slightly up from 4.2% in the three months to December 2023.

- Inflation: The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.8% in the 12 months to March 2024, unchanged from February.

Eurozone

- Economic Growth: The Eurozone's GDP increased by 0.3% in Q1 2024 from -0.1% prior.

- Inflation: In April 2024, inflation year on year in the Eurozone is at 2.4%, remaining stable compared to March 2024.

- Jobs: The Eurozone’s seasonally-adjusted unemployment rate remained at 6.5% in March 2024, consistent with February 2024

Japan

- Economic Growth: Japan’s GDP contracted at an annualized rate of -2.0% in Q1 2024, weighed down by sluggish private consumption and exports.

- Inflation: The annual inflation rate in Japan ticked lower to 2.7% in March 2024 from February’s 3-month peak of 2.8%, matching market consensus.

China

- Economic Growth: China’s GDP grew by 5.3% in the first quarter of 2024, beating expectations. This expansion was faster than the 5.2% growth in the fourth quarter of 2023 and exceeded the 4.6% growth expected by economists. The growth was driven in part by external demand, as export volume grew by 14% year-on-year.

- AI and Technology: While the specific challenges faced by Chinese electric vehicle (EV) makers due to US tariffs were not mentioned in the provided sources, it is clear that they are actively seeking opportunities in markets like Brazil, reflecting geopolitical tensions.

Australia

- Inflation: The Consumer Price Index (CPI) rose by 1.0% in the March 2024 quarter. Over the twelve months to the March 2024 quarter, the CPI rose 3.6%.

- Jobs: The seasonally adjusted unemployment rate rose by 0.2 percentage points to 4.1% in April, up from a revised 3.9% in March

New Zealand

- Inflation: Inflation Q1 2024 year on year dropped to 4% from 4.7%.

Switzerland

- Economic Growth: Switzerland's GDP grew by 0.2% in Q1 2024, supported by the financial services sector and strong exports. This is just a flash number and may change if there are revisions 45 days after each quarter.

- Inflation: increase to 0.3% (April) from 0% (March)

- ESG: Swiss banks directed over CHF 50 billion into ESG investments in 2023, reflecting global sustainability trends.

Canada

- Economic Growth: Canada's GDP year on year dropped 0.8% in February from 0.9% in March.

- Jobs: Employment numbers surpassed expectations, with 40,000 jobs added in April. The unemployment rate dropped to 5.0%.

- Inflation: CPI year on year inflation was 2.9 % in March, up from 2.8% in February. The Bank of Canada maintained its interest rate at 5%.