Profit taking on Friday capped the advances of stock indexes on Wall Street and in Europe, a day after they notched all-time highs. The S&P 500 closed 0.14% lower and the Nasdaq rose a similar amount.
Switzerland’s surprise rate cut on Thursday cemented the notion that, BOJ aside, developed country central banks would be easing interest rates soon.
That thinking obviously includes the Fed, which on Wednesday left the fed funds rate alone at 5.25% to 5.50% but indicated it was still prepared to lower rates by 75 basis points this year, despite a worrying uptick in U.S. inflation and economic growth solid enough perhaps to dodge a soft landing.
Many markets in Europe and in the U.S. will be closed on Friday, for Good Friday. As it happens, since it’s not a U.S. pubic holiday, the most important data of the week, the February personal consumption expenditures inflation index, lands when markets are closed. But Asia will be the first markets to trade on it the following Monday.
Meanwhile there is not as much incentive to buy during a holiday-shortened week. China’s stock exchanges are also closed but Japan’s are open.
