#macroeconomic-pressures

#macroeconomic-pressures

The Bank of Japan's loose monetary policy has turned the yen into the world's cheapest and most reliable funding currency, creating a publicly subsidised funding pipeline for bankers.

"Fresh food and perishables are almost like the canary in the coal mine," when energy prices go up, according to Vidya Mani, an associate professor at the University of Virginia's Darden School of Business.

"Today's increase is significant, but it doesn't mean the labor market is back on track or growing robustly. The gains are highly concentrated in a few industries, not broad-based across the economy."

'Walmart Worries' just keep multiplying. It's currently close to the highest level ever recorded which was during the Great Financial Crisis of 2008-09.

High energy prices are kryptonite for the housing market. Affordability, especially for those first-time home buyers, is now an elusive dream until oil prices come down and interest rates come down.

The S&P 500 closed up approximately 2.4% near 6,496, while the Nasdaq Composite gained roughly 3.3% to around 21,475, indicating a strong market response to geopolitical news.

"Oil prices are higher again this morning, but Treasury yields are lower as the risks to economic growth begin to take precedence over the risks to inflation," Oxford Economics said in a note on Monday.

Employers added 178,000 jobs last month, much more than forecasters had expected, reversing big job losses in February and indicating a rebound in the labor market.

Goldman Sachs now expects Brent crude to average $105 per barrel in March and $115 in April before retreating to $80 by year-end, assuming roughly six weeks of Hormuz supply disruptions.

Escalating geopolitical risk continued to dominate global markets' concerns, with safe-haven demand keeping the dollar index anchored near a multi-week high.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain, the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.

Weak performance in several service sectors offset gains in retail and wholesale trade, reinforcing concerns about the pace of economic recovery. Japan relies heavily on oil imports from the Middle East, making it particularly sensitive to disruptions in the region.