Renta 4 : European markets open higher (Eurostoxx futures +0.5%), with the markets on hold ahead of the inflation data due on Thursday and Friday in Europe and the US, which will determine the extent to which central banks will have to continue to raise interest rates.
Meanwhile, the most advanced cycle indicators (German IFO, US Conference Board consumer confidence) show a better than expected performance in March, although the recent financial turmoil could lead to some deterioration in the future, reflecting both the delayed impact of the rate hikes already implemented and the expected tightening of credit. Today in Germany we will have the GFK consumer confidence for April.
In Italy, we note that the European Commission has suspended the payment of €19 billion of Next Generation funds (out of a total of €191 billion that it should have received until 2026) due to the lack of progress in the reforms demanded by Brussels. The market reaction was very limited (debt spreads with Germany should be watched), insofar as Meloni’s government has so far applied orthodox policies, and they are giving themselves a period of one month to reach an agreement.