Revenue generated by UAE hotels rose to AED 45bn in 2024, according to Abdulla bin Touq Al Marri - Minister of Economy - representing a 3% y/y gain. Minister Al Marri highlighted the role played by the opening of 16 new hotels over the course of the year, with the number of hotel rooms rising 3% to reach 216,966 at the end of 2024. Growth of 9.5% y/y took the number of hotel guests to 30.8m in 2024, with the UAE making continued progress towards the objective of 40m hotel guests by 2031, as set out in the National Tourism Strategy.
Eurozone retail sales rose 0.3% m/m in February, the first monthly gain since September 2024, but remained below consensus expectations for a 0.5% rise. While we continue to expect the ECB to make further cuts to lending rates, which should support consumer spending, risks to the downside include the prospect of rising reciprocal tariffs and the impact of recent financial market turmoil damaging consumer confidence.
German industrial production fell by more than expected in February, declining 1.3% m/m after a 2% gain the month prior. Although German industrial output has stabilized in recent months, it remains low by historical standards and is expected to come under further pressure – particularly in the automotive sector – as President Trump’s tariffs come into play.
Today’s Economic Data and Events
No key data releases
Fixed Income
- The sweeping tariffs announced by President Trump last week continued to buffet financial markets, with US treasuries falling sharply on Monday. The 10yr yield was 19bps higher, rising to 4.1835%, while the yield on the 2yr UST rose 11bps to 3.7629%. The move in yields came despite a repricing of expectations that the Fed will need to cut rates more than previously expected this year, with markets suggesting around 96bps of cuts, up from 76bps at the beginning of last week.
- There were broad-based rises in European bond yields on Monday. The 10yr Gilt yield gained 17 bps to 4.6177%, while the 10yr Bund yield rose 3.5bps to 2.610%.
FX
- The dollar gained against a basket of major peer currencies on Monday, with the spot index rising 0.23%. EURUSD fell 0.4% to 1.0912, while GBPUSD saw a second consecutive steep decline, falling 1.3% to 1.2724. USDJPY rose 0.6% to 147.84.
- Commodity currencies continued to fall against the dollar on Monday. AUDUSD fell 0.9% to 0.5984, NZDUSD declined 1% to close at 0.554, and USDCAD rose 0.2% to reach 1.4248.
Equities
- US equity markets endured sharp swings on Monday, dropping initially before a rally towards the end of the day sparked by rumors of a potential pause in tariff hikes. The Dow Jones ended the day 0.9% weaker and the S&P 500 was 0.23% lower, while the NASDAQ eked out a 0.1% gain.
- European markets were weaker again on Monday. The Euro Stoxx 50 fell 4.6%, the FTSE 100 dropped 4.4%, the CAC40 declined 4.8% and the DAX dropped 4.13%.
- Local markets also saw declines on the day, with the DFM down by 3% and the ADX weaker by 2.89%.
Commodities
- Oil prices fell further on Monday, with both Brent futures and WTI declining by just under 2.1% to USD 64.21/b and USD 60.7/b, respectively. Prices have rebounded marginally in early morning trade.