WS #15149
US August Core PCE data came in below forecast, offering relief to equity markets and reducing the probability of an immediate rate hike. However, this is counterbalanced by faster-than-expected inflation jumps in the Eurozone and Germany, which raises the odds of an ECB rate hike. This divergence creates a mixed macro environment where US growth remains resilient while European inflation pressures persist, complicating global liquidity expectations.
US Macro Data Divergence
US August Core PCE data came in below forecast, offering relief to equity markets and reducing the probability of an immediate rate hike. However, this is counterbalanced by faster-than-expected inflation jumps in the Eurozone and Germany, which raises the odds of an ECB rate hike. This divergence creates a mixed macro environment where US growth remains resilient while European inflation pressures persist, complicating global liquidity expectations.