Russian stocks rally after Crimea polls back Ukraine split however currency markets take a dip!
Two events on Wednesday will dominate market thinking this week – firstly we have the March meeting of the US Federal reserve Open Markets Committee and, in the UK, the annual Budget presentation.
Following February’s labour market report, the fed is expected to continue the tapering of its asset purchase program. Wednesdays meeting will also produce updated economic forecasts and probably a change to the Feds forward guidance on interest rates.
Wednesdays UK budget will be the first annual presentation since the crisis held in the context of a rapidly improving economic outlook. Also on Wednesday, UK labour market data are likely to show continued solid employment growth.
We are hoping this proves to be Pound rate positive but going by recent market movements anything is possible!
In Germany the ZEW March survey is released tomorrow. This is likely to show further improvement in the economy however the expectations measure may reflect concern over the tensions in Ukraine, since the effect of any trade sanctions would hit Germany hard!