*Fed Governor Michelle Bowman on Monday suggested that a half percentage-point increase in interest rates could be on the table next month if incoming readings on inflation come in too high.*
*The Fed’s key inflation metric accelerated to a fresh four-decade high in January, a report this week is forecast to show, which would bolster the case for higher rates.*
*European markets closed lower on Monday as investors monitored the Russia-Ukraine situation and unexpectedly strong economic data from the euro zone and U.K.*
In corporate news, *Credit Suisse* said on Sunday that it “strongly rejects” allegations published following a coordinated global media investigation into a mass leak of its client data over previous decades. The leaked information was purported to contain human rights abusers and businessmen under sanctions.
The Swiss lender said the information published by the Organized Crime and Corruption Reporting Project and 46 other news organizations was based on “partial, inaccurate, or selective information taken out of context.” Credit Suisse shares fell 3%.
*On the data front, IHS Markit’s flash euro area composite PMI (purchasing managers’ index) reading, seen as a reliable gauge of overall economic health, came in at a five-month high of 55.8 in February despite record rises in consumer prices.*
*The figure significantly outpaced the 52.7 forecast in a Reuters poll and the 52.3 seen in January.*
*The U.K.’s composite PMI came in at an eight-month high of 60.2 in February, up from 54.2 in January and well above forecasts.*
*The strength of the readings raises expectations that central banks will need to hike rates more sharply than previously anticipated as inflation continues to soar.*
*Here are some events to watch this week:*
China property prices, loan prime rates Monday
New Zealand rate decision Wednesday
BOE Governor Andrew Bailey appears before the Treasury Committee Wednesday
Bank of Korea policy decision Thursday
EIA crude oil inventory report Thursday
Fed officials Loretta Mester and Raphael Bostic speak Thursday
U.S. new home sales, GDP, initial jobless claims Thursday
U.S. consumer income, U.S. durable goods, PCE deflator, University of Michigan consumer sentiment Friday
*Currencies*
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1317
The British pound rose 0.1% to $1.3604
The Japanese yen rose 0.2% to 114.82 per dollar
The offshore yuan was little changed at 6.3264 per dollar
*Bonds*
Germany’s 10-year yield advanced one basis point to 0.21%
Britain’s 10-year yield advanced three basis points to 1.41%
*Commodities*
West Texas Intermediate crude rose 3.2% to $93.95 a barrel
Gold futures rose 0.3% to $1,906.20 an ounce
By: via @AlliesFin Serve Stock Market
