EQUITIES
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38,461.51 | -422.16 | -1.09% |
| S&P 500 | 5,160.64 | -49.27 | -0.95% |
| Nasdaq | 16,170.36 | -136.28 | -0.84% |
| VIX | 15.80 | 0.82 | 5.47% |
| Gold | $2,352.30 | $3.90 | 0.17% |
| Oil | $86.35 | $0.14 | 0.16% |
US MARKET
On Wednesday, US stocks fell due to a higher-than-expected inflation report, leading traders to rethink potential Federal Reserve rate cuts.
The Dow Jones Industrial Average dropped over 450 points early in the day, while bond yields surged, with the 10-year Treasury yield rising by 10 basis points to 4.474%.
March saw continued inflation acceleration, with consumer prices rising by 0.4% for the month and 3.5% year-over-year, surpassing economists’ expectations. Core inflation, excluding volatile food and energy prices, also increased to 3.8% year-over-year.
Concerns about persistent inflationary pressures arose, with markets now pricing in only a 6% chance of a significant rate cut by the Fed this year, down from 61% a month ago.
The likelihood of a June rate cut has been entirely discounted. Greg McBride, Bankrate’s chief financial analyst, expressed skepticism about a June rate cut. Seema Shah, chief global strategist at Principal Asset Management, suggested that even if inflation were to moderate next month, there might be enough caution within the Fed to prevent a rate cut in July.
Notable developments included Robert Kiyosaki’s prediction of a crash in stocks and real estate and Fitch’s negative outlook for China.
In commodities, West Texas Intermediate crude oil rose by 0.5% to $85.70 a barrel, and Brent crude increased by 0.6% to $89.92 a barrel.
Gold prices declined by 1.14% to $2,326.14 per ounce, and Bitcoin dropped by 4.15% to $67,768.
LOCAL MARKET
The Australian stock market continued its upward trend for a third consecutive day ahead of the release of US inflation figures, which could influence future interest rate decisions.
The S&P/ASX200 index rose by 0.31% to reach an eight-day closing high of 7,848.5, while the broader All Ordinaries increased by 0.35% to 8,109.7.
Investor sentiment in the short term is heavily influenced by developments on Wall Street, particularly the release of March inflation data and the Federal Reserve Open Market Committee meeting minutes. Economists predict a slight decrease in the consumer price index, potentially impacting expectations for future rate cuts in the US.
In New Zealand, the Reserve Bank maintained its cash rate at 5.5%, as anticipated, while the Bank of Canada is expected to do the same later in the day.
Among the ASX sectors, eight out of eleven ended higher, with notable gains in the property sector, led by Goodman Group and Lendlease. In the mining sector, Rio Tinto, Fortescue, and BHP experienced positive movements, building on previous gains.
Gold miners showed mixed performance despite record-high gold prices, with Northern Star declining and Newmont rising slightly. In the energy sector, Whitehaven Coal and Yancoal saw gains.
The Big Four banks had a mixed performance, with Commonwealth Bank down, ANZ edging lower, and Westpac and NAB remaining flat. In the small-cap segment, Dubber Corp announced a capital raising following the alleged misappropriation of company funds, resulting in a significant discount in share price.
The Australian dollar strengthened, trading at 66.23 US cents compared to 65.80 US cents at Tuesday’s close.
In international markets, the NZX 50 rose by 0.46% to 11,971.92, while the Nikkei dropped by 0.48% to close at 39,581.81 at the time of writing.