Market overview

U.S. inflation is at the highest since 1981

The U.K. CPI is at 30 years peak

Russian-Ukrainian peace talks reached a dead end

FOREX

US Dollar Index (USDX)

The U.S. dollar edged higher in early trades after the release of the inflation data. Meanwhile, the Dollar Index traded 0.2% higher at 100.48. The release of the U.S. consumer price index lived up to expectations. CPI rose 8.5% in March compared to the previous year to hit the highest rate since 1981.

However, the core CPI landed at 6.5%. This raised the possibility that the Federal Reserve (Fed) might be less aggressive than expected. Moreover, the benchmark 10-year U.S. Treasury yield traded at 2.765% early Wednesday, compared with an over-three-year peak of 2.836% before the inflation data.

Euro (EURUSD)

The European currency traded 0.1% lower at 1.0818, just above a new five-week low. Additionally, the Russian President Vladimir Putin stating that peace talks with Ukraine were “at a dead-end”. The war in Ukraine has heavily pressuring the sentiment in Europe. The German ZEW economic research institute stated that its economic sentiment index fell to -41.0 points from -39.3 in March.

The European Central Bank meets on Thursday and has difficulty balancing soaring prices with these pressures on growth. Although a slight rate hike is expected at this meeting, money markets are discounting about 70 basis points of interest rate tightening by December.

Sterling Pound (GBPUSD)

The Sterling pound fell 0.1% to 1.2986 against the greenback after data showed U.K. inflation climbing to its highest in over 30 years in March. Furthermore, the annual rate of consumer inflation climbed to 7.0%, up 1.1% in month-on-month terms.

The Bank of England (BOE) has lifted interest rates at its last three meetings, to above the levels seen pre-pandemic, but so far this has done little to impact the growing cost-of-living crisis in the country.   

Japanese Yen (USDJPY)

The Japanese Yen weakened against the greenback and the USDJPY pair rose 0.6% to 126.14. The samurai currency seems to be ignored as the Bank of Japan has repeatedly intervened to keep benchmark bond yields around zero, in direct contrast to most of the yields of rival countries’ debt.

Indices

U.S. Indices

U.S. inflation data showed consumer prices rise 8.5% in March from the previous year — the highest level since 1981 and fueling concerns of tighter monetary policy from the Federal Reserve while Core CPI rose 0.3%, slightly below expectations. The United States 10-Year bond yield hit new three-year highs at 2.82% before pulling back to 2.727%.

On Tuesday, The Dow Jones Industrial Average fell 0.26% to 34,220.36, the S&P 500 lost 0.34% to 4,397.45 and the Nasdaq Composite 0.3% to 13,371.57. However, during today’s trades, Dow Jones Futures added 0.13%, S&P 500 Futures were up 0.07% and Nasdaq 100 Futures gained 0.05%.

European Indices

European stock markets are expected to open in a mixed fashion Wednesday, with investors weighing the risks associated with soaring inflation, central bank policies, and the ongoing Ukraine conflict. The DAX futures traded 0.6% higher, while CAC 40 futures dropped 1.3% and the FTSE 100 futures fell 0.1%.

The U.K. CPI rose 7% on the year to a 30-year high in March. These inflationary pressures are potentially keeping the Bank of England (BOE) on its tightening path. BOE has already raised interest rates to pre-pandemic levels, hiking at three successive meetings for the first time since 1997.

The European Central Bank (ECB) is set to hold its latest policy-setting meeting on Thursday. The pressure on the policymakers to tighten Eurozone monetary policy, Data released Tuesday showed German consumer price inflation rising 7.3% over the year.

Asian Indices

Asia-Pacific stocks were mixed during the morning session as investors continued weighing the risks from high inflation. China’s Shanghai Composite was down 0.31% and the Shenzhen Component slid 1.33%, while Hong Kong’s Hang Seng Index was down 0.31%. Japan’s Nikkei 225 rose 1.64% and the Australian ASX 200 edged up 0.12%, with the Westpac consumer sentiment index contracting 0.9% in April.

Metals

Gold prices edged higher as concerns of an escalation in the Russia-Ukraine conflict increased safe-haven bids for the precious metal, although a firmer U.S. dollar capped bullion’s gains. Russian President Vladimir Putin described the on-and-off peace negotiations as “a dead-end situation” on Tuesday, while U.S. President Joe Biden said for the first time that Moscow’s invasion of Ukraine amounts to genocide.

Spot gold was up 0.2% at $1,969.61 per ounce after hitting a near one-month peak of $1,978.21 on Tuesday, while the U.S. gold futures were down 0.1% at $1,973.70.

Spot silver was up 0.5% at $25.48 per ounce, platinum rose 0.7% to $971.96, and palladium gained 2.7% to $2,387.77.

Energy

Oil prices edged up after Moscow said peace talks with Ukraine had hit a dead end, fueling supply worries, while weak economic data from China and Japan kept a lid on gains.

Brent crude rose 0.2% to $104.86 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0.1% to $100.68 a barrel. The benchmarks had surged more than 6% on Tuesday.

Crude futures are also drawing support from falling Russian oil and gas condensate production to below 10 million barrels per day (bpd) on Monday, its lowest since July 2020. Western sanctions against Russia after it invaded Ukraine and logistical constraints have hampered trade, people familiar with the data said on Tuesday

However, weak economic data from China and Japan capped oil price gains. China’s crude oil imports slipped 14% from a year earlier, extending a two-month slide, as strict COVID curbs hit demand in the world’s top crude importer.

wwwstartraddev

Share
Published by
wwwstartraddev

Recent Posts

美国股票杠杆调整通知

尊敬的用户: 您好,为进一步提升STARTRADER的竞争力和优化客户的交易体验,从2024年11月25日起,所有美股产品的杠杆将进行调整。 调整详情如下: 产品代号 原杠杆 变更后杠杆 All US Shares美股 1:20 1:33 *所有日期均以 GMT+2 为准(MT4/MT5 服务器时间)。 强烈建议持仓客户相应管理您的仓位,因为上述工具的杠杆将于 2024…

3 days ago

双重认证(2FA):操作一小步,安全一大步

尊敬的客户 STARTRADER星迈始终把客户的利益放在首位,通过双重认证(2FA)为您的交易之旅保驾护航。您可点击此处查看启用流程,轻松完成设置。 双重认证,或称双因素认证,即2 Factor Authentication——2FA验证,是全球领先金融机构广泛使用的重要安全措施之一,用于进一步保障客户账户和支付的安全性。 迈出这关键的一步, 让双重认证(2FA)为您的交易之旅护航, 助您安全畅游交易世界,收获丰硕成果! 如果您有任何疑问或需要协助,请发送电子邮件至 info@startrader.com 或通过在线聊天 https://www.startrader.com/ 联系我们, 我们随时乐意为您提供帮助。

6 days ago

11月期货展期通知

尊敬的客户: 您好,我司期货产品十一月份的展期将至,因新旧期货合约之间存在价格差异,为规避潜在的交易风险,建议客户妥善控制仓位。 期货合约的展期时间如下: 产品代号 产品名称 展期日 FRA40ft France 40 Index Future法国CAC40指数(期货) 2024-11-14 CL-OIL Crude Oil…

2 weeks ago

11月闭市通知

尊敬的客户: 您好,受即将到来11月份假期影响,STARTRADER的交易时间将有所调整。 请参考下表了解涉及调整的产品情况: 日期 2024年11月4日 2024年11月11日 2024年11月15日 2024年11月20日 假期 万圣节 卡塔赫纳独立日 共和国日 黑人意识日 BVSPX巴西股指(圣保罗指数) 正常…

3 weeks ago

即将到来的美国夏令时调整交易时间

尊敬的客户: 请注意,由于2024年11月3日实施的美国夏令时变化,以下产品的交易时间将会调整。 产品代号 交易时间 (GMT+2) Cocoa美国可可豆现货 星期一~星期四: 11:45-20:30星期五: 11:45-20:27 Coffee阿拉比卡咖啡豆现货 星期一~星期四: 11:15-20:30星期五: 11:15-20:27 Sugar11号精糖现货 星期一~星期四:…

3 weeks ago

11月闭市通知

尊敬的客户: 您好,受即将到来11月份假期影响,STARTRADER的交易时间将有所调整。 请参考下表了解涉及调整的产品情况: 日期 2024年11月1日 假期 万圣节 USDCLP美元兑智利披索 闭市 USDINR美元兑印度卢比 闭市 *所有日期均为GMT+3(MT4/MT5服务器时间) 请注意:在市场流动性下降情况下,点差可能会较正常平均水平显著扩大,我们建议客户在交易时要妥善管理仓位、确保账户资金充足,并且进行谨慎交易。 如果您有任何疑问或需要任何帮助,请随时发送电子邮件至 info@startrader.com 或透过线上聊天 https://www.startrader.com/ 联系我们。 感谢您的支持!STARTRADER团队

3 weeks ago