🧮It’s a Red month indeed🧸

Major indices gave up their gain in the final trading hours and closed in the red for the month to conclude the wild ride. In contrast to a strong January showing, February has been a month of new realisation: inflation will remain sticky. The Fed maintained its aggressive rate hike and elevated interest rate level for a more extended than expected period. 

Yesterday US consumer confidence data showed potential economic cracks as the index hit 102.9, worst than expected. While it could help with the inflation narrative, it has evoked some hard-landing worry. 

💸Inflation might have a helping hand🔫

The M2 money supply had dropped the most based on a yearly basis. It measures the total amount of currency and coins in banks, traveller’s checks and the sum of money by retail in market funds, even extending to saving deposits. 

The negative growth level of 1.7% is a melody to the Fed, as slower money growth often supports a weaker price level in the general economy. It also matched the current monetary policy on a tightening cycle.

Finally, conventional economics works in favour of the Fed!

🥃US markets after-hour fell🍟

We see the fall in US markets after-hour as Nasdaq faces pressure from supposed news of Nvdia issuing hybrid securities of a $10B offering. Moreover, the US House China Committee is holding its first meeting, which is expected to have harsh rhetoric on China and further sour risk-on sentiments. 

📮What are our dishes today? 📖

At 10.45 pm, we will have the Manufacturing PMI for Feb, which is likely to improve from 46.9 to 47.8.

ISM Manufacturing PMI for Feb will be released at 11 pm. The expectation is to rise from 47.4 to 48.0.