Morning View
The Federal Reserve left the benchmark rate unchanged at 4.50%, in line with expectations.
International
The US Federal Reserve (Fed) left the monetary policy rate unchanged at the current 4.25%-4.50% range, in line with analysts' consensus expectations. However, the Fed noted that there is greater uncertainty about the economic outlook and, hence, upside risks to unemployment and inflation.
US Treasury yields showed slight compressions in most maturities yesterday, following the Fed's decision. The exception was the 1-year bond, which closed at 4% versus 3.99% previously, while the 3-year bond ended at 3.74% versus 3.76% previously, and the 10-year bond settled at 4.27% versus 4.31% previously.
On the other hand, the main US equity indices closed yesterday's trading session with widespread increases. The Dow Jones index gained +0.7%, followed by the S&P 500 with +0.4% and the Nasdaq with +0.3%. However, the indices accumulated declines of -3.4%, -4.3% and -8.1%, respectively, for the year.
In the euro zone, March retail sales declined -0.1% month-on-month, in line with expectations, while in the year-on-year comparison they rose +1.5%, slightly below expectations (+1.6%). Against this background, the EuroStoxx 50 equity index declined -0.6% on a daily basis.
Fuente: PUENTE Hnos, Bloomberg
In the US, equity indices closed negative ahead of the Federal Reserve meeting.
International
The major US equity indices continued their downtrend in yesterday's trading. The Nasdaq and the Dow Jones each declined -0.9%, while the S&P 500 was down -0.8%. Thus, the indices accumulated declines of -8.4%, -4.0% and -4.7%, respectively, for the year.
It is worth noting that during the day, the focus will be on the monetary policy meeting of the US Federal Reserve (Fed), with analysts' consensus expectation that the benchmark rate will remain in the current range of 4.25%-4.50%. The committee is due to communicate its decision after the release of a series of macroeconomic data and the implementation of the Trump administration's trade policy.
Meanwhile, US Treasury yields ended yesterday with slight compressions. Thus, the 1-year bond closed at 3.99% versus Monday's 4.02%, the 3-year bond ended at 3.76% versus 3.81% previously, and the 10-year bond closed at 4.31% versus 4.34% previously.
In the US, the March trade balance showed a deficit of USD 140.5 billion, an increase of +14% month-on-month, the largest since the series began in 1992. This is due to a significantly higher rise in imports (+4.4% month-on-month, totalling USD 419 billion) over exports (+0.2% month-on-month, at USD 278.5 billion), prior to the government's implementation of tariffs.
Fuente: PUENTE Hnos, Bloomberg
