The economic outlook appeared highly uncertain to investors Tuesday, as they awaited key US inflation data and the Federal Reserve’s next policy meeting.
Australia
ASX futures had added 24 points or 0.3% as of 6:00am on Wednesday, pointing to a positive open.
North America
US indices ended mixed on Tuesday ahead of the release of March consumer-price data due later this week.
- S&P 500 closed flat
- Dow Jones Industrial Average gained 0.3%
- Nasdaq Composite fell 0.4%
Investors remained focused on interest rates ahead of the Federal Reserve’s next policy meeting, scheduled for May 2–3. Traders are increasingly expecting another 0.25% rate hike following strong labor data. Key inflation data due Wednesday and comments from central bankers this week will shape expectations further.
In commodity markets:
- Brent crude oil rose 1.7% to $US85.63 a barrel
- Gold gained 0.7% to US$2,004.58
Bond market:
- Australian 2 Year yield: 2.88%
- Australian 10 Year yield: 3.22%
- US 2 Year yield: 4.05%
- US 10 Year yield: 3.43%
Currency:
- Australian dollar: 66.50 US cents
- WSJ Dollar Index: 98.65
Asia
Chinese shares ended mixed amid signs of weak inflation. Consumption and property stocks rose, while telecoms fell. The Shanghai Composite Index slipped 0.1% to 3313.57.
Hong Kong's Hang Seng Index rose 0.8% to 20485.24, boosted by property stocks after soft inflation data.
Japanese stocks gained on easing policy fears. Nikkei rose 1.0% to 27923.37. Electronics and trading firms led gains.
India's Sensex added 0.5% to 60157.72, with banks and industrials rising ahead of earnings season.
Europe
European stocks climbed despite a pessimistic IMF forecast.
- Stoxx Europe 600: +0.6%
- CAC 40: +0.9%
- DAX: +0.4%
UK's FTSE 100 gained 0.6%, led by miners and oil stocks. Shell rose 0.6% after announcing a carbon capture partnership.
North America – Corporate Highlights
Investor focus shifts toward earnings and inflation outlook:
- Newmont raised its offer for Newcrest Mining to $19.5B; shares fell 2.3%
- CarMax jumped 9.7% on better-than-expected Q4 earnings
- Mohawk Industries: +5.7%
- Whirlpool: +3.8%
- CF Industries and Mosaic: +4%+
- Moderna fell 3.1% after flu vaccine trial disappointment
