1 Feb 2024: Seeing Red and Green

Incoming data have reinforced a soft landing narrative in financial markets over the past few days. And although there was some push back from the Fed against expectations that it might begin cutting policy rates as soon as March, there was equally little to challenge the idea that a pivot toward looser monetary policy will shortly emerge. In our charts this week we home in on:

·         Data surprises and equity markets

·         Euro area inflation

·         The Indian economy

·         Global semiconductor sales

·         Supply chain bottlenecks

·         US household balance sheets