Concerns over a weak earnings season pushed U.S. large caps into negative territory in March, though smaller cap stocks continued their advance due to the relative strength of the domestic economy. International equities also traded lower as concerns of the impact of a Greek exit from the EMU weighed on investors. Interest rates in the U.S. continued their decline, despite a Federal Reserve which continues to signal that a rise in short‐term interest rates is likely later this year. In the eurozone, interest rates remain negative, supporting fears of deflation but also stimulating domestic consumption.
- Domestic growth remained somewhat subdued in Q4, at 2.2%, with declines in
- Corporate earnings in Q4 declined by 5.6% year over year while earnings estimates
uncertain impact of low crude prices
- The ECB's bond buying program has stimulated eurozone consumer confidence,
growth in nearly a decade and well ahead of 2.3% consensus (Bloomberg)
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