- Yesterday's session on Wall Street was characterized by a negative sentiment despite initial gains driven by better performance of benchmarks from the Old Continent.
- This behavior is reflected in the Asian and Pacific markets today. Nikkei is down over 2.4%, Hang Seng is down 1.3%, and KOSPI is down nearly 1.6%.
- The weakness in the market is primarily driven by the armed conflict in the Middle East, where Israel responded forcefully to recent missile attacks by Iran.
- Around 10 am Tokyo time, there were numerous reports of explosions in Syria, Iraq, and Iran. However, larger media agencies and Iran itself later denied rumors of heavy military attacks.
- Tehran airport has imposed restrictions on operations and air traffic control.
- The second factor contributing to the market weakness was the reaction to Netflix's quarterly results.
- Netflix reported results that were significantly higher than expected. The consensus exceeded most key measures for the company, such as earnings per share, user earnings, and subscriber growth. However, the company's stock lost 4% after the close of Wall Street because the management plans to stop disclosing data on new subscription growth from 2025.
- Japanese CPI inflation data for March were roughly in line with expectations. The headline index came in slightly lower at 2.7% YoY compared to the previous reading of 2.8%. However, the core data matched the previous reading at 2.6% YoY.
- FED Bostic stated that the US economy is slowing down, but at a slow pace. These comments open the window for delaying the timing of the first rate cut.
- Geopolitical uncertainty is impacting the markets today. Brent and WTI crude oil are currently up over 2.5%. Futures contracts indicate significant declines at the start of the session in the US and Europe. Bitcoin is down nearly 2%. Safe-haven currencies are leading in the FX market, including the Swiss franc, the Japanese yen, and the US dollar.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.