Macro Briefing: 6 March 2024

* Red Sea cables cut, affecting data traffic flow between Asia and Europe
* Biden and Trump secure respective parties’ nominations after Tue’s vote
* Global economic growth picks up to eight-month high in February: PMI survey
* Strong US economy fuels bets that Fed will delay interest rate cuts
* US factory orders decline more than expected in January
* US ISM Services Index dips in February but still signals modest growth:

Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill today will be in focus as markets look for fresh guidance on the outlook for interest rates. “The question now for the market is to glean any information on when the Fed will begin employing rate cuts and how many,” says Quincy Krosby, chief global strategist at LPL Financial. “He’s not going to answer that necessarily. But if there is any change, any nuance, that is what the market wants to see.” Ahead of the testimony, US Treasuries rallied to a one-month high on Tuesday (Mar. 5), based on the iShares 7-10 Year Treasury Bond ETF (IEF).