Federal Reserve Chair Janet Yellen spoke at the Economic Club of New York overnight and in prepared remarks discussed the risks of continued global
uncertainty on the recovery in the U.S. "Given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy,” Yellen noted. Further commentary was directed towards the recent uptick in inflation, with Yellen noting, “Core PCE inflation, which strips out volatile food and energy components, was up 1.7% in
February on a 12 month basis, somewhat more than my expectation in December. But it is too early to tell if this recent faster pace will prove durable."
Single-family home prices in the U.S. continued to rise during January according to the S&P/Case-Shiller Home Price Index. The index jumped +5.43% YoY for January to follow December's +5.3%, while the 10-city index increased 5.1% YoY and the 20-city index popped 5.75% YoY.
The Conference Board’s index of consumer confidence rebounded during March, jumping to 96.2 (exp:94.0) to follow February's upwardly revised 94.0 (prev: 92.2). The expectations index surged to 84.7 from79.9, while the present situation index slipped to 113.5 from 115.0.
Equity markets in the U.S. surged higher on the back of Chair Yellen's overnight comments, recovering from a soft open to post strong gains across the board. The Nasdaq led the major bourse's higher, adding +1.67%, while the DJIA climbed +0.56% higher and the S&P 500 jumped +0.88% as technology and utilities led all ten components higher.
European equities were generally higher overnight leading into Federal Reserve Chair Yellen's comments, turning higher late in trade after paring early session gains. The FTSEurofirst 300 climbed +0.47% higher, the German Dax added +0.37% and the miners weighed upon the UK FTSE 100 as the bourse eased -0.01%.
Commodity markets saw oil lower as WTI and Brent both returned -2.2%, while LME base metals closed broadly lower.
- Treasury prices spiked following Yellen's overnight comments, taking the 2-year around 8ps lower to +0.784% and the 10-years down a similar amount
to +1.802%.
Reference: MKS News
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