ASX Opens Flat, Wall Street Slides on Data and Rates Outlook

Bitcoin fell 0.8% to $29,957 at 7:01 am AEST on bitstamp.net.

The 10-year US Treasury yield fell 4 basis points to 3.39% at 4:59 pm in New York.

On Wall Street, S&The P 500 opened higher after March CPI data were largely in line with expectations, but the initial optimism faded by mid-morning as investors reinterpreted the data, giving way to 2 p.m. recovered to

At 2pm, however, the Fed released its latest meeting minutes, showing that policymakers are divided on interest rates. Some considered a pause last month, while others discussed a 0.5-point hike. In the end, they agreed to raise his price by a quarter of a point.

The S&P then fell until 3:30pm, holding most of its losses towards the close.

“At the March meeting, the discussion of holding rates was considered, but it was clearly perfunctory,” Pantheon Macroeconomics said in a report. The Fed nevertheless hiked rates.

In a note, Goldman Sachs said a key takeaway from the CPI data was that monthly shelter inflation fell sharply. “We expect shelter trends to decline going forward, as we believe the mark-to-market effect of existing tenant rents resetting post-pandemic highs is currently at an advanced stage.

Goldman also said, “We are reversing the Fed’s call to withdraw the expected rate hike in June. We continue to expect a rate hike in May, which raises the target range to 5-5.25%.” Stated.

Other overnight headlines:

The year-on-year rate of change in the consumer price index slowed from 6% in February to 5% in March, well below estimates of 5.1%. Excluding food and energy, core CPI was 5.6%, up from 5.5% the previous month, but in line with estimates.
Federal Reserve policymakers have scaled back expectations for a rate hike this year after a series of bank failures last month roiled markets.
The Bank of Canada kept rates on hold at two consecutive meetings, running counter to market expectations of a rate cut later this year.
Sales at LVMH, Europe’s most valuable company, surged in the March quarter as Chinese shoppers bounced back from the world’s toughest lockdown and splashed out on luxury goods.
A new study from the Pew Research Center found that Americans are now seeing China as America’s “enemy” rather than as a competitor.

today’s agenda

Local: April Inflation Expectations (11am AEST). March Workforce (11:30 AM AEST)

International data: China March exports, imports. His CPI Final in his March in Germany. Eurozone industrial production for February; his PPI for US March is 10:30 pm AEST.

market highlights

ASX futures fell 3 points to 7357 around 6:40am AEST.

AUD +0.6% to 66.92 cents
Bitcoin -0.8% to $29,957 (7:01 AM AEST)
Wall Street: Dow -0.1% S&P -0.4% Nasdaq -0.9%
New York: BHP -0.5% Rio -0.3% Atlassian -2.7%
Tesla -3.4% Apple -0.4% Amazon -2.1% Microsoft +0.2%
STOXX 50 +0.02% FTSE +0.5% CAC +0.1% DAX +0.3%
Gold Spot +0.6% at 2015.70 USD/oz at 2:39pm New York
Brent Crude +1.9% at $87.27 a barrel
Iron ore -1.5% $117.90 per ton
10-Year Yield: US 3.39% Australia 3.24% Germany 2.36%
US prices as of 4:59 PM New York

America

US inflation is at 5%, but interest rates are still far away The latest economic data make it almost certain that the US Federal Reserve will raise interest rates again.

Some Federal Reserve officials considered a moratorium on interest rates in March, but persistent inflationary pressures have raised concerns about the collapse of several regional U.S. banks ahead of a recent policy meeting. offset.

JP Morgan’s board of directors summons its executive directors to the office five times a week, saying bank leaders need to stand out on the floor and meet, teach and advise customers.

Buffett said people shouldn’t worry about Berkshire or banks.

Elon Musk says Twitter could be cash flow positive soon It is said that it is operated by dots.

merchandise

Space companies essential in search of more lithium “Everything in space is already electrified,” says the Australian space agency boss, and has lessons for decarbonizing the planet.

Canada’s Finance Minister Chrystia Freeland warns US lawmakers of the risk of starting a cleantech subsidy war, saying a ‘race to the bottom’ risks eroding the tax bases of the US and its allies bottom.

In a speech in Washington, Mr. Freeland lauded America’s inflation-reducing legislation that ushered in the Green Industrial Revolution, but a strong domestic tax system is essential to supporting middle-class families and reducing economic inequality. He said a foundation is essential.

“Even more reason not to start a new mutually destructive competition to provide richer corporate subsidies,” he told the Peterson Institute for International Economics. “A war between corporations and subsidies may be good for some shareholders, but it will also deplete public coffers and undermine the social safety nets that are the foundation of effective democracy.”