What are the prominent topics of the economic agenda?

Turkey’s CPI-based real effective exchange rate increased by 0.09 points to 54.01 in March. The US foreign trade deficit rose to a record level of 89.2 billion dollars in February. Services sector PMI rebounded in March as employment and orders rose to 58 from 56.5 in February. The ISM services index rose to 58.3 from 56.5 in February. Fed manager Lael Brainard said that there may be a further rise in inflation, which requires a faster rate hike. Kansas City Fed President Esther George stated that they will evaluate an interest rate hike by 50 basis points, and that a 50 basis point increase in interest rates is among the options at the May meeting. San Francisco Fed President Mary Daly stated that the interest rate hike, aimed at bringing down very high inflation, will slow down economic growth, but the US economy will not enter a recession. The services sector PMI in the European Euro Area rose to 55.6 in March, exceeding expectations. European Commission President Ursula von der Leyen stated that Russia attacked civilians in Ukraine, and therefore they would increase the pressure on the country and announced that they proposed the 5th sanctions package. Germany’s services PMI rose to 56.1 in March, exceeding expectations. Factory orders in Germany fell 2.2% MoM in February, above expectations for a 0.2% decline. Orders were up 2.3% in January. The service sector PMI in France rose to 57.4 in March, in line with expectations. In France, the industrial production index decreased by 0.9% on a monthly basis, despite the expectations for an increase of 0.2% in February. Italy’s services PMI fell to 52.1 in March, exceeding expectations. UK services sector PMI rose to 62.6 in March, above expectations. In Asia, China’s Caixin service sector PMI fell to 42 in March, the lowest since February 2020, as the rise in coronavirus cases restrained mobility and stifled consumer demand. Other Russia’s services PMI fell sharply from 52.1 to 38.1 in March as demand and new orders decreased. Due to the inflation threat, the Romanian Central Bank increased the policy rate by 50 basis points to 3%, the highest level in 8 years. Source: Vakifbank