Get ready to uncover the pulse of the market as we delve into the latest developments shaping stocks, currencies, commodities, and more. From the impact of US inflation on rate speculations to Microsoft's groundbreaking AI tool unveiling, we've got the insights you need to stay ahead.
Stocks stall as US inflation impacts rate speculations
The global stock market rally pauses as concerns over rising inflation in the United States dampen expectations for imminent interest rate cuts by the Federal Reserve. With MSCI's global equity index down 0.2% on Friday and flat for the week after seven weeks of consecutive gains, investors are reevaluating their positions in light of recent economic data.
The cautious mood sets in as U.S. producer prices rise more than anticipated, compounding concerns raised earlier in the week by elevated consumer inflation figures.
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Microsoft surges as new AI tool unveiled
Microsoft's stock ($MSFT) is surging, set to hit a record high, following the announcement of Copilot for Security, an innovative AI tool designed to combat cybersecurity threats in businesses. With shares climbing 2.5% to $425.33 on Thursday, Microsoft is outperforming in both the Dow Jones Industrial Average and the Nasdaq 100.
Copilot for Security, leveraging Generative AI, promises swift response capabilities for teams across various business sizes, marking a significant advancement in cybersecurity measures. Initially introduced in March 2023, this tool underscores Microsoft's commitment to staying at the forefront of technological innovation.
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Oil prices rally: heading for 4% weekly surge
Oil prices are poised to conclude the week with a substantial 4% increase, propelled by optimistic forecasts from the International Energy Agency (IEA) and unexpected drops in US stockpiles. Despite a minor dip on Friday, Brent Crude oil futures hover around $85 a barrel, while US West Texas Intermediate (WTI) crude remains near $80.
The IEA's revised projections for 2024 oil demand, coupled with disruptions in Red Sea shipping due to Houthi attacks, have contributed to the bullish sentiment in the market.
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US Dollar holds ground ahead of key economic data
The US Dollar holds onto recent gains as it consolidates near 103.50 amid anticipation of crucial mid-tier data releases. After a subdued start to the week, the USD surged against its counterparts, marking a more than 0.5% increase on Thursday.
Eyes are now on February's Export and Import Price Index, Industrial Production figures, and the preliminary Consumer Sentiment Index for March, alongside the Empire State Manufacturing Survey results.
Will these data releases reinforce the USD's current momentum?
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This concludes our weekly recap. Have a great weekend and see you next week! 👋
