US Core PCE Signals Persistent Inflation Pressure

• For sentiment to build from here, investors will want to see real follow-through, particularly around shipping conditions through the Strait of Hormuz, alongside any signs discussions are moving beyond short-term arrangements.
• In US inflation data, core PCE rose 0.4% over the month in February, indicating underlying price pressures are still running firm.
• Year-on-year, core PCE eased marginally to 3.0% from 3.1%, though it remains above the Fed’s 2% target, keeping inflation in focus.
• On the growth side, Q4 GDP was revised down to 0.7% annualised, reflecting softer consumer demand, reduced government spending tied to the shutdown, and weaker investment.