The potential peace treaty between North Korea and the US dominated the weekend headlines. South Korean media reported that Kim Jong Un wants to sign a peace treaty with the US and establish diplomatic relations while agreeing to nuclear disarmament, after he meets Donald Trump. Key details of the summit have yet to be decided, but Trump has agreed to meet the North Korean leader last week. The peace treaty Kim Jong Un is alleged to want, will only be agreed to by the US after denuclearisation, rather than signing one to start the process. The positive news has increased risk on sentiment.
Today is a big day for UK politics as Chancellor Hammond gives his Spring Budget update. Although the most anticipated budget now occurs in the autumn, it will still be worth keeping tabs on Hammond’s updates this afternoon. Hammond has promised this speech will not contain any major changes to tax or spending, instead it will be a public finance update.
In the US, we have the highly anticipated inflation reading released today. US CPI is forecast to rise by 0.2% m/m as inflation gradually increases in the States. The annual rate should therefore climb slightly to 2.2%. Although employment in the US remains strong, wage growth continues to be allusive, so it will be interesting to see how broader inflation is developing.