Global Markets:
- Asian Stock Markets : Nikkei up 0.39%, Shanghai Composite down 0.01%, Hang Seng up 0.06% ASX down 0.35%
- Commodities : Gold at $2350.5 (0.35%), Silver at $28.68 (0.81%), Brent Oil at $83.47 (0.11%), WTI Oil at $79.22 (0.13%)
- Rates : US 10-year yield at 4.48, UK 10-year yield at 4.20, Germany 10-year yield at 2.50
News & Data:
- (CAD) Building Permits m/m -11.7% vs -4.6% expected
Markets Update:
Asia-Pacific markets opened higher on Tuesday but later retreated as Wall Street stocks stumbled, ending the Dow Jones Industrial Average’s eight-day winning streak. Investors focused on India’s inflation data, which showed the consumer price index rising by 4.83% year-on-year, nearly in line with expectations. Wholesale inflation figures for India were awaited later in the day.
Bank of Japan data indicated stable corporate inflation in April but a sharp 6.4% year-on-year increase in import prices, likely due to yen depreciation. Hong Kong’s Hang Seng index initially rose by 0.6% before flattening, while China’s CSI 300 index reversed gains to trade lower. Japan’s Nikkei 225 and the broader Topix hovered near the flatline.
In the US, traders grappled with rising inflation expectations ahead of key reports later in the week. A New York Federal Reserve survey revealed consumer expectations for price hikes, with one-year inflation expectations at 3.3% and the five-year outlook at 2.8%. On Wall Street, the Dow dropped 0.21%, the S&P 500 edged down 0.02%, and the Nasdaq Composite gained 0.29%. Notably, meme stock GameStop surged 74% after “Roaring Kitty” returned to online forums after three years.
Upcoming Events:
- 12:30 PM GMT – CAD Wholesale Sales m/m
- 12:30 PM GMT – USD Core PPI m/m
- 12:30 PM GMT – USD PPI m/m
- 2:00 PM GMT – USD Fed Chair Powell Speaks
