2024-03-12 08:54:09
We are closely monitoring the February US CPI data to be released this week, to determine how much further inflation will fall in the near term.
Main Points
- Three topics to watch – We are monitoring three topics that will impact climate transition investment opportunities and risk: battery pricing, global elections, and market interest in climate resilience.
- Market context – US stocks were mostly flat last week, while 10-year US Treasury yields fell further. Markets still expect a first rate cut from the Federal Reserve around mid-2024.
- This week – We are closely monitoring the February US CPI data to be released this week, to determine how much further inflation will fall in the near term. We still expect inflation to resurface in 2025.
The transition to a low-carbon economy is a mega-force that we are tracking and affecting investment returns today. This year, we anticipate market-changing developments in three key areas. First, falling battery prices might boost demand for energy storage systems for grids and electric and hybrid vehicles. Second, elections around the world might impact future energy and industrial policies. And third, the increase in physical damage which might stimulate interest in a new investment theme: climate resilience.
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