Thursday 11th April: Markets concerned as IMF cuts global growth forecasts again

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Thursday 11th April:  Markets concerned as IMF cuts global growth forecasts again 1

Global Markets:

  • Asian Stock Markets : Nikkei down 0.01%, Shanghai Composite down 1.46%, Hang Seng down 0.88%, ASX down 0.35%
  • Commodities : Gold at $1311.55 (-0.18%), Silver at $15.19 (-0.33%), Brent Oil at $71.39 (-0.47%), WTI Oil at $64.24 (-0.57%)
  • Rates : US 10-year yield at 2.474, UK 10-year yield at 1.086, Germany 10-year yield at -0.026

News & Data:

  • (CNY) PPI y/y 0.40% vs 0.40% expected
  • (CNY) CPI y/y 2.30% vs 2.30% expected
  • (USD) Core CPI m/m 0.10% vs 0.20% expected
  • (USD) CPI m/m 0.40% vs 0.30% expected
  • (EUR) Main Refinancing Rate 0.00% vs 0.00% expected
  • (GBP) Manufacturing Production m/m 0.90% vs 0.20% expected
  • (GBP) GDP m/m 0.20% vs 0.20% expected
  • (AUD) Westpac Consumer Sentiment 1.90% vs -4.80% previous

Markets Update:

Asian stocks fell on Thursday but held near eight-month highs after the European Central Bank left its ultra-easy stance unchanged as expected and EU leaders agreed to extend the deadline for U.K. to leave the union to the end of October. Gold held near a two-week high touched in the previous session as the dollar struggled for a fourth straight day in view of a dovish turn by the European Central Bank and pretty tame inflation data from the U.S.

Chinese equities dropped after the country’s consumer inflation touched a 5-month high on the back of higher food prices. Mainland Chinese stocks were lower by the morning session’s end, with the Shanghai composite declining 1.5 percent and the Shenzhen component slipping about 2.2 percent. Hong Kong’s Hang Seng index shed 0.9 percent.

In Japan, the Nikkei 225 was largely flat in afternoon trade as shares of robot maker and index heavyweight Fanuc declined more than 0.4 percent, while the Topix index fell slightly. In Australia, the ASX 200 shed 0.4 percent as the sectors traded mixed. Australian Prime Minister Scott Morrison announced Thursday that a general election was set for May 18.

In currencies, the British pound was slightly higher at $1.3099 after European leaders agreed to extend the deadline for UK to leave the union to the end of October, averting a potential crash out of the bloc on Friday with no divorce deal.

Minutes from a March 19-20 meeting of Federal Reserve policymakers showed they agreed to be patient about any changes to interest rate policy as they saw the U.S. economy weathering a global slowdown without a recession in the next few years. U.S. Treasury yields slipped in response, reinforcing expectations that the Fed would hold rates steady or possibly cut them by the end of the year

Upcoming Events:

  • All Day – (All) OPEC Meetings
  • 01:30 PM GMT – (USD) PPI m/m
  • 01:30 PM GMT – (USD) Core PPI m/m
  • 02:30 PM GMT – (USD) FOMC Member Clarida Speaks
  • 02:40 PM GMT – (USD) FOMC Member Bullard Speaks
  • 09:00 PM GMT – (USD) FOMC Member Bowman Speaks
  • &more…

 

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