12th May 2022 Thursday: Markets in the red on higher than expected US inflation

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.77%, Shanghai Composite down 0.12%, Hang Seng down 2.20%, ASX down 1.75%
  • Commodities : Gold at $1846.72 (-0.38%), Silver at $21.30 (-1.26%), Brent Oil at $105.25 (-2.10%), WTI Oil at $103.21 (-2.36%)
  • Rates : US 10-year yield at 2.826, UK 10-year yield at 1.750, Germany 10-year yield at 0.891

News & Data:

  • (GBP) Prelim GDP q/q 0.80% vs 1.00% expected
  • (NZD) Inflation Expectations q/q 3.29% vs 3.27% previous
  • (USD) Core CPI m/m 0.60% vs 0.40% expected
  • (USD) CPI m/m 0.30% vs 0.20% expected

Markets Update:

Asian stock markets are trading mostly lower on Wednesday, following the continued sell-off on Wall Street, as traders remained wary about faster interest rate hikes after US data showed higher-than-expected core inflation. Traders also remain cautious amid concerns about economic slowdown and persistently rising inflation.

The Australian stock market is modestly lower on Thursday, giving up the gains in the previous session, with the benchmark S&P/ASX 200 staying above the 7,000 mark, following the broadly negative cues overnight from Wall Street, with sharp losses in technology stocks amidst concerns over interest rates. In Hong Kong, the Hang Seng Tech index traded 4% lower.  Mainland Chinese stocks shed earlier gains, with the Shanghai Composite down 0.1% and the Shenzhen Component falling 0.3%. The Japanese stock market is significantly lower on Wednesday, giving up the gains in the previous session, with the Nikkei 225 falling below the 26,000 mark. 

Crude oil prices climbed higher on Wednesday, rebounding sharply from recent losses thanks to data showing a significant drop in flows of Russian gas to Europe. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.082 as it continues to hold above the 103.8 level that it fell below at certain points earlier this week.

Upcoming Events:

  • 12:30 PM GMT – (USD) PPI m/m
  • 12:30 PM GMT – (USD) Core PPI m/m
  • 12:30 PM GMT – (USD) Unemployment Claims