Wednesday 14 April 2021: Asian markets higher as inflation lower than expected

Global Markets:

• Asian Stock Markets : Nikkei down 0.44%, Shanghai Composite up 0.60%, Hang Seng up 1.40%, ASX up 0.66%
• Commodities : Gold at $1745.65 (-0.11%), Silver at $25.52 (+0.38%), Brent Oil at $64.66 (+1.55%), WTI Oil at $61.16 (+1.63%)
• Rates : US 10-year yield at 1.638, UK 10-year yield at 0.788, Germany 10-year yield at -0.297

News & Data:

• (NZD) Official Cash Rate 0.25% vs 0.25% expected
• (USD) 30-y Bond Auction 2.32|2.5 vs 2.30|2.3 previous
• (USD) Core CPI m/m 0.30% vs 0.20% expected
• (USD) CPI m/m 0.60% vs 0.50% expected
• US says row over Nord Stream gas pipeline from Russia won’t impact ties with Germany

Markets Update:

Asian stocks rose broadly on Wednesday after the International Monetary Fund offered a more upbeat view on Asia’s economic outlook than six months ago and data showed a tamer-than-expected increase in U.S. underlying inflation. Investors awaited cues from the U.S. earnings season, with JPMorgan Chase & Co. and Goldman Sachs Group Inc among the companies reporting their results later in the day.

Australian markets gained ground after a survey showed consumer confidence in the country surged to an 11-year high in April. Chinese shares advanced as strong exports data added to signs of a solidifying recovery in the world’s second-largest economy.

Japanese shares ended lower as daily Covid cases in Osaka breached the 1,000 mark and data showed core machine orders sank 7.1 percent in February on an annual basis, missing forecasts for an increase of 2.3 percent following the 1.5 percent gain in the previous month.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.71 after touching an earlier low of 91.665. Treasury yields eased too, slipping to a three-week low against major peers. Gold, a traditional inflation hedge, was flat at $1,743.01 per ounce.

Upcoming Events:

• 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
• 02:30 PM GMT – (USD) Crude Oil Inventories
• 04:00 PM GMT – (USD) Fed Chair Powell Speaks