The data show that, over the period, Egypt managed to slightly strengthen its reserve position, potentially enhancing its capacity to meet external obligations and support currency and financial stability. While the move represents only a small change in absolute terms, it keeps the reserves on an upward trajectory as of March 2026.

In the corporate arena, bank stocks advanced, with Bradesco up 0.6%. Embraer added 0.4% after Bradesco BBI issued a positive assessment of its operating figures, highlighting that first-quarter deliveries surpassed both its estimates and market consensus across the commercial, executive, and defense segments. Petrobras climbed 1% on the back of higher oil prices, while other notable gainers included Vale, up 0.5%, and Ambev, up 0.6%.

Reports indicated that US allies were pushing for a last-minute agreement with Iran as part of a possible longer ceasefire, but the risk of further escalation remained elevated. Tehran’s retaliatory rhetoric, combined with President Trump’s threat of aggressive military action beginning tomorrow, kept geopolitical tensions high.

The conflict continued to disrupt crude and refined product supplies, with European spot crude prices having climbed to their highest levels since 2008 last week. Credit costs moved higher as the pro-inflationary backdrop was reinforced by Friday’s strong jobs report and a sharp rise in manufacturing and services input costs captured in the ISM surveys, heightening the risk of a more hawkish Federal Reserve response.

In corporate news, Netflix gained nearly 2% following an upgrade from Goldman Sachs, while AMD climbed almost 3%, recovering from last week’s losses in the broader compute sector.

At the same time, the prices index jumped to 70.7 in March, the highest level since October 2022, from 63.0 in February, reflecting rising oil and fuel costs. The supplier deliveries index also pointed to slower performance compared with February (56.2 vs. 53.9), in line with ongoing shipping disruptions and flight cancellations linked to the Middle East conflict and winter weather.

Meanwhile, inventories (54.8 vs. 56.4) and order backlogs (53.6 vs. 55.9) both eased, while new orders accelerated (60.6 vs. 58.6). “The predominant commentary this month was about impacts and adjustments due to the conflict with Iran and the expected flow-through of higher oil prices at some point,” said Steve Miller, Chair of the ISM.

The sharp increase suggests that service providers are facing stronger cost inflation, which may reflect higher expenses for labor, materials, or other inputs. While the data does not specify the underlying drivers, a reading this elevated typically points to broad-based price increases within the sector.

With services making up a substantial share of U.S. economic activity, the March jump in the ISM Non-Manufacturing Prices Index adds to concerns that inflationary pressures could remain persistent, potentially influencing expectations for monetary policy and financial markets in the months ahead.

The March uptick suggests that underlying labor market dynamics remain resilient, with incremental gains rather than abrupt shifts. While the move from February to March is small, the direction of change is notable for investors and policymakers tracking the trajectory of hiring and overall economic strength in the United States.

Market participants will likely watch upcoming ETI releases closely to assess whether this gentle upward trend solidifies, stalls, or reverses, as it can provide an early signal of changes in job growth and broader economic momentum.

February’s figure of 56.1 had indicated robust activity in non-manufacturing industries such as finance, healthcare, retail, and professional services. The moderation to 54.0 in March suggests that while demand remains solid, momentum is cooling compared with earlier in the year.

With the index staying above the 50-point threshold that separates expansion from contraction, the data points to continued, albeit softer, growth in the largest component of the US economy. Investors and analysts are likely to watch upcoming releases closely for signs of whether March’s slowdown reflects a temporary pause or the start of a more sustained deceleration in services activity.

The move above the 60-point mark underscores continued expansion, as readings above 50 typically indicate growth in new business activity. The two-point increase from February suggests momentum is building in services demand, an area that encompasses a wide range of industries outside of traditional manufacturing.

The updated figures, released on 06 April 2026, will be closely watched by investors and policymakers as they assess the resilience of the broader U.S. economy and the potential implications for employment, corporate revenues, and future monetary policy signals.

The drop below the 50 threshold marks a notable shift in momentum for the labor market in services, which make up the bulk of U.S. economic activity. February’s reading of 51.8 had indicated modest job growth, but March’s 45.2 suggests that employers in sectors such as retail, hospitality, health care, and professional services may have scaled back hiring or reduced staff.

This deterioration in service-sector employment conditions in March 2026 could raise concerns about the durability of broader U.S. labor market strength, as investors and policymakers watch closely for signs of cooling demand and potential spillovers into overall economic growth.

February’s 59.9 reading had indicated robust momentum, placing business activity firmly in strong expansion territory. The pullback to 53.9 in March suggests that while demand and output in services remain on an upward trajectory, the pace of that growth has cooled noticeably.

Analysts and market participants will likely interpret the shift as a sign that service-sector strength—an important pillar of overall U.S. economic performance—may be normalizing after a period of elevated activity. With the index remaining above the 50 threshold that separates expansion from contraction, the data indicate continued growth, albeit at a more measured rate heading into the second quarter of 2026.

Financial heavyweights underpinned the market, with RBC, TD Bank, and BMO each gaining more than 0.6%. Energy producers also proved resilient despite volatile crude prices: Imperial Oil advanced 0.7%, Suncor Energy added 0.6%, and Canadian Natural Resources climbed 0.7%.

Mining shares were mixed, with Agnico Eagle down 0.2% and Barrick Gold slipping 1.1%. On the domestic front, S&P Global data showed Canada’s Composite PMI at 47.6 in March, signaling contraction for a fifth consecutive month as the Middle East conflict continued to weigh on demand.

Reports indicated that US allies were pushing for a last-minute agreement with Iran tied to a potential longer-term ceasefire. However, heightened rhetoric from Tehran, alongside President Trump’s threat of aggressive strikes beginning tomorrow, kept the risk of further escalation elevated.

The conflict continued to disrupt supply in crude oil and refined products, with spot crude prices in Europe having touched their highest levels since 2008 last week. The pro‑inflationary backdrop for Federal Reserve policy was reinforced by a strong jobs report released on Friday, giving the Fed more scope to raise interest rates and tempering the prospects for a more robust resurgence in risk appetite.

In corporate news, Netflix gained nearly 2% following an upgrade from Goldman Sachs, while AMD rose close to 3%, rebounding from last week’s weakness in the compute sector.

February’s reading of 46.50 had already marked a contraction compared with the previous month, and March’s uptick indicates a modest recovery in sentiment and activity. The month-over-month framework used for the indicator compares each reading to the prior month, providing a short-term view of momentum in the services sector.

The latest data, updated on 06 April 2026, will be closely watched by markets and policymakers as they assess whether the services downturn is starting to bottom out or merely pausing before further weakness. With the PMI still in contraction territory, the sector remains under pressure, but the incremental gain in March offers a cautiously more positive signal than the prior month.

Price pressures intensified: output charges rose sharply, registering the strongest increase since October, while input costs climbed at the fastest rate in four months. Employment expanded for a second straight month and at a moderate pace, with job creation accelerating compared with February.

Service providers remained optimistic about activity growth over the next 12 months. However, overall business confidence weakened from February and remained below the long-run series average.

The drop of three index points over a single month suggests that while Brazil’s services industry remains in growth territory, the pace of expansion has slowed markedly. February’s 53.1 reading had pointed to a solid improvement in business activity, but March’s near-flatline result signals more cautious dynamics in the sector.

With the March figure barely above the neutral level, the data hint at a more fragile operating environment for service providers in early 2026, as they navigate moderating demand and potentially tighter financial conditions. Investors and policymakers are likely to watch upcoming releases closely to see whether this slowdown proves temporary or evolves into a more pronounced soft patch for Brazil’s services economy.

The decline in the March 2026 index suggests that the earlier positive momentum seen in February has not been sustained, with both output and new business likely under pressure across key sectors of the economy. A sub-50 reading typically reflects softer demand and more cautious corporate sentiment, factors that can weigh on hiring plans and investment decisions.

While the drop from 51.3 to 49.9 is modest, it marks a notable shift in direction for Brazil’s composite activity indicators and will be closely watched by investors and policymakers for signs of whether this is a temporary setback or the start of a more prolonged slowdown in the country’s economic recovery.

The shift from flat growth in December to a notable decline in January suggests that businesses and the public sector alike curtailed investment in fixed assets such as machinery, equipment, and construction compared with January 2025. As the data are measured on a year-over-year basis, the latest reading points to a more challenging investment environment entering 2026 than at the close of 2025.

With gross fixed investment serving as a key gauge of future productive capacity and long-term economic growth, the January downturn may raise concerns about the strength and durability of Mexico’s expansion in the months ahead. Investors and policymakers will be closely watching subsequent releases to assess whether this decline is temporary or the start of a more persistent slowdown in capital formation.

The January figure, measured on a month-over-month basis, compares the change in investment levels against December 2025, when the indicator had still been expanding. By contrast, December’s 0.50% rise reflected growth over November 2025. The new data suggest that momentum in capital spending—covering items such as machinery, equipment and construction—softened notably as 2026 began.

While only two consecutive monthly readings are available, the shift from moderate growth in December to contraction in January will be watched closely by analysts and investors as a possible early signal of cooling investment activity in Mexico’s economy.