- Wall Street indices trade lower today after a slump triggered by hawkish US inflation data. S&P 500 and Nasdaq drop 1%, Dow Jones trades 1.2% lower and small-cap Russell 2000 slumps 3%
- FOMC minutes showed that Fed members are concerned about persistance of inflation and that recent data did not add confidence that inflation is moving sustainably towards 2% target
- US CPI inflation accelerated from 3.2 to 3.5% YoY in March (exp. 3.4% YoY), while core measure stayed unchanged at 3.8% YoY (exp. 3.7% YoY). On month-over-month basis both measures increased 0.4% MoM, while markets expected 0.3% MoM
- As this was the third hawkish surprise in CPI data since the beginning of the year, a strong hawkish reaction could be spotted on the markets, with USD gaining and equities plunging
- Oil prices jumped on Middle East tensions. According to Bloomberg report, US sees a retaliation missile strike on Israel by Iran and its proxies as imminent
- European stock market indices traded mixed today - French CAC40 dropped 0.05%, German DAX gained 0.11%, UK FTSE 100 moved 0.33% higher, Dutch AEX jumped 0.64% and Spanish Ibex dropped 0.38%
- Cryptocurrencies traded lower today, although major coins managed to avoid big slumps. Bitcoin traded flat, Ethereum dropped 0.3% and Ripple moved 1.6% lower
- USD and JPY are the best performing currencies while AUD and NZD lag the most
- Bank of Canada left interest rates unchanged at the sixth meeting in a row, in-line with market expectations. CAD gained, however, as the bank boosted GDP forecast as well as neutral rate range forecast
- CAD erased post-decision gains after BoC Governor Macklem said during press conference that June remains one of possibilities for timing of the first rate cut
- NZD gained after Reserve Bank of New Zealand left interest rate unchanged, in-line with market expectations. However, RBNZ noted in a statement that rates will need to remain at restrictive level for a sustained period to ensure return of inflation to 1-3% target range
- Fed Barkin said that he thinks a lot of progress on inflation is being made
- DOE report pointed to a big 5.84 million barrel build in headline crude oil inventories (exp. 2.4 mb), gasoline inventories increased by 0.72 mb (exp. -1.3 mb) and distillate inventories increased by 1.66 mb (exp. -1.2 mb)
- Canadian building permits surged 9.3% MoM in February (exp. -4.2% MoM)
- Italian retail sales increased 0.1% MoM in February (exp. 0.2% MoM)
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