Bonds in Asia fell sharply after higher-than-expected US inflation supported the view that the Federal Reserve is in no rush to cut interest rates. Benchmark 10-year yields in Australia and New Zealand climbed by more than 10 basis points. Their Japanese counterpart rose to the highest since November. US Treasuries recovered slightly after a Wednesday selloff lifted the 10-year yield above 4.5% for the first time in five months. A gauge of global bonds suffered its worst performance since February 2023 on Wednesday, while a Treasuries index showed its biggest decline since August 2022. Stocks retreated in Asia but pared losses. While benchmarks dropped in Hong Kong and Australia, those in Japan and China fluctuated. South Korean shares reversed earlier declines after President Yoon Suk Yeol’s party suffered a significant loss in parliamentary elections. US futures were steady after the S&P 500 fell 1% and the Nasdaq 100 dropped 0.9% on Wednesday. A dollar index was little changed after touching its highest level this year Wednesday. The yen inched higher after weakening to levels not seen since 1990 against the dollar in the prior session. The depreciation has sparked fresh speculation Japanese authorities might step into the market to support the currency. In China, the central bank ramped up support for the yuan against a resurgent greenback by setting the daily reference exchange rate at a level that topped estimates by a record. The cross-asset moves followed March US core consumer price index, which excludes food and energy costs. The gauge increased 0.4% from February, more than the 0.3% consensus forecasts, to beat expectations for a third straight month. Investors are now signaling the US central bank will slash rates just twice this year, starting in September, less than the most recent Fed dot plot that indicated three 2024 cuts. At the start of the year, market pricing indicated six cuts were expected. Former Treasury Secretary Lawrence Summers went a step further to say that one would have to “take seriously the possibility that the next rate move will be upwards rather than downwards.” Such a likelihood is somewhere in the 15% to 25% range, he told Bloomberg Television’s Wall Street Week with David Westin. In China, consumer prices barely increased from a year earlier last month and industrial prices continued to slump, underscoring the deflationary pressures that remain a key threat to the economy’s recovery. Australian consumer inflation expectations ticked higher. Rates traders have started pricing for the potential that the Reserve Bank of Australia will end the year with no rate cuts at all. Other data due for release includes Philippine trade figures. Markets are closed in Indonesia, Malaysia, India, Pakistan, Sri Lanka and Bangladesh. Elsewhere, oil prices held gains on worries about further conflict in the Middle East. West Texas Intermediate, the US oil price, inched higher after rising more than 1% Wednesday on news the US and its allies believe major missile or drone strikes by Iran or its proxies against military and government targets in Israel are imminent. US After Hours ALPN +36.6% to be acquired by VRTX; COST +0.5% higher on March comps and dividend increase; REGN -2.6% lower as US DOJ files complaint.
Nikkei -0.44% Hang Seng -0.14% CSI +0.14% Shanghai +0.51% Shenzen +0.68%
Eur$ 1.0745 CNH 7.2530 CNY 7.2361 JPY 152.93 GBP 1.2547 CHF 0.9124 RUB 93.3000 TRY 32.3141 WTI$ 86.37 +0.17% Gold 2,342 +0.35% BTC 70,532 +1.04% ETH 3,563 +1.40%
S&P +0.02% Nasdaq +0.07% EuroStoxx -0.06% FTSE +0.27% Dax -0.07% SMI +0.10%
Macro :
- Powell’s Soft-Landing Dream in Danger as Traders Hedge Inflation
- Alecta Faces Governance Revamp After Losing Billions on US Banks
- Germany May Be Europe’s Achilles’ Heel in First-Quarter Earnings
- Proposals for New US Power Plants Jump 90% on Surging Demand
- Traders Flee Real Estate Stocks as Inflation Darkens Outlook
- Swiss Market Up 32%? It's a Different Index Without `Ugly Three'
Keep an eye on :
Keep an eye on :
- ADBE US : Adobe Is Buying Video Clips for $3 Per Minute to Build AI Model
- ALPN US : Vertex Enters Into Agreement to Acquire Alpine Immune Sciences
- AMBUB DC : Ambu Boosts FY Organic Revenue Forecast
- Banca Progetto : Centerbridge Makes Bid for Minority Stake in Banca Progetto: MF
- BMC software IPO : KKR Is Said to Weigh Sale or IPO for $15 Billion BMC Software
- ELE SM : Spanish Utilities' Nuclear Margin Sinks as Phaseout Risk Lingers
- ERA FP : Eramet in Pact With France to Extend SLN Financial Guarantees
- FAGR BB : Fagron 1Q Revenue EU209.2M Vs. EU181.4M Y/y
- YACHT IM : Wanda Said to Agree to Sell James Bond’s Yachtmaker to Lionheart
- GXI GY : Gerresheimer 1Q Revenue Meets Estimates
- GIVN SW : Givaudan 1Q Sales Beats Estimates
- HELN SW : Helvetia FY Combined Ratio Reported 97.4% Vs. 94.3% Y/y
- IDIA SW : Idorsia Seeks to Change Terms of Convertible Bond Maturing July
- JANX US : Cancer-Drug Maker Janux Is Said to Weigh Possible Sale
- NTGY SM : Naturgy Shares Swing After Betaville Mention
- NTGY SM : Naturgy Shares Swing After Betaville Mention
- TFC US : PACS Group Is Said to Raise $450 Million in Upsized IPO
- PUB FP : Publicis 1Q Organic Revenue Beats Estimates
- REP SM : Repsol 1Q Downstream Refining Margin/BBL Beats Estimates
- RHM GY : Rheinmetall Record Backlog Can Propel Robust Results: 1Q Preview
- ROG SW : Roche Gets FDA Breakthrough Designation for Alzheimer’s Test
- RUI FP : Rubis Secures Final Deal for Terminal JV Stake Sale
- SFL IM : Safilo, Marc Jacobs Renew Global Licensing Pact to Dec 2031
- GLE FP : SocGen to Sell Equipment Finance Arm to BPCE For €1.1B
- STLA IM : Stellantis CEO Warns Pain to Come if Italy Gets Chinese EV Plant
- X US : Biden Reiterates Union Pledge Over US Steel Sale to Nippon Steel
- VACN SW : VAT 1Q Net Sales CHF198.5M Vs. CHF232.7M Y/y