New York, NY – The latest U.S. inflation data suggests that the Federal Reserve may need to maintain current interest rates for the time being, according to Fed Governor Christopher Waller. Speaking at the Economic Club of New York, Waller emphasized the importance of not rushing to cut the policy rate, noting that a cautious approach is essential to ensure sustainable inflation levels.

Waller highlighted the risks of easing monetary policy too quickly or too late, emphasizing the need to strike a balance to avoid negative impacts on employment and economic stability. He stressed the importance of monitoring inflation carefully and adjusting policy rates accordingly to support a steady trajectory towards the Fed’s 2% target.

European stock markets opened higher on Thursday, with the Stoxx 600 index climbing by 0.2% in London early trading. Despite recent market movements being relatively subdued, major indices such as the FTSE 100, CAC 40, and DAX all showed gains, indicating positive investor sentiment in the region.

In the UK, final data from the Office for National Statistics confirmed that the economy entered a recession in the second half of the previous year. The report revealed a 0.3% contraction in GDP in the fourth quarter, following a 0.1% decline in the third quarter. Output across key sectors like services, production, and construction experienced declines, with several economic indicators pointing to challenging conditions.

In Hong Kong, the Hang Seng tech index surged by 2.6%, led by strong performances from tech stocks like Bilibili, which saw an 8.3% increase. The tech sector outperformed the broader Hang Seng index, reflecting growing investor appetite for technology companies in the region.

Meanwhile, Japan is reportedly on the brink of intervening in the yen, with experts suggesting that authorities are considering action to support the currency amid its recent weakening trend. Market speculation surrounding potential intervention has been fueled by the yen’s decline to its weakest level in 34 years against the dollar, prompting discussions about the need for policy measures to stabilize the exchange rate.

Barclays analysts noted a shift in investor preferences away from cash towards risk assets, indicating a potential change in market dynamics. The allure of cash as an asset class has been gradually waning, with momentum slowing as investors seek opportunities in bonds and stocks with expectations of lower interest rates and robust earnings fundamentals driving market behavior.

Looking ahead, new additions to the S&P 500 index in April, including GE Vernova and Solventum, are set to reshape the market landscape. These changes reflect ongoing shifts in the corporate sector and investor sentiment, underscoring the dynamic nature of financial markets and the importance of adapting to evolving trends for long-term success.