Global Markets:
- Asian Stock Markets : Nikkei down 0.36%, Shanghai Composite up 0.15%, Hang Seng down 0.27% ASX down 0.44%
- Commodities : Gold at $2353.5 (0.16%), Silver at $29.97 (-0.32%), Brent Oil at $90.43 (-0.08%), WTI Oil at $86.17 (-0.08%)
- Rates : US 10-year yield at 4.55, UK 10-year yield at 4.04, Germany 10-year yield at 2.46
News & Data:
- (USD) Core CPI m/m 0.4% vs 0.3% expected
- (USD) CPI m/m 0.4% vs 0.3% expected
- (CAD) Overnight Rate 5.0% vs 5.0% expected
Markets Update:
Asia-Pacific markets reacted negatively to higher-than-expected U.S. inflation data for March, raising concerns about prolonged Federal Reserve interest rate policies. The U.S. Consumer Price Index rose by 3.5% year-on-year and 0.4% month-on-month, surpassing economist forecasts. Excluding volatile food and energy prices, the core CPI also exceeded expectations, climbing 0.4% monthly and 3.8% annually. In China, consumer inflation eased to 0.1% in March, diverging from expectations, while the producer price index aligned with forecasts, recording a 2.8% year-on-year decline.
South Korean markets saw the Kospi index recover from earlier losses, gaining 0.15%, while the Kosdaq index remained slightly below par. In South Korea’s parliamentary election, liberal opposition parties secured a significant victory, potentially impeding the legislative agenda of the incumbent conservative party. Japan’s Nikkei 225 index fell by 0.35%, but the broader Topix index rebounded with a 0.15% gain. Australia’s S&P/ASX 200 index slid by 0.44%, ending a three-day winning streak.
In the U.S., all three major indexes experienced significant declines as the 10-year Treasury yield surged. The Dow Jones Industrial Average led losses, plummeting by 1.09%. The S&P 500 dropped by 0.95%, with ten of its eleven sectors closing in the red, while the Nasdaq Composite sank by 0.84%. The 10-year Treasury note yield surpassed 4.5%, and the 2-year Treasury yield surged close to 5%.
Upcoming Events:
- 12:15 PM GMT – EUR Main Refinancing Rate
- 12:30 PM GMT – USD Unemployment Claims
- 12:45 PM GMT – EUR ECB Press Conference
