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Markets Update: APAC Markets Rally as US Momentum Propels Investors Ahead of Fed and ECB Events - Will US CPI Release Stoke Inflation Fears?
Today's important market events:
[EUR] German Industrial Production (MoM - Mar) - 08:00 CEST
-3.4%(Actual) vs -1.3%(Forecast) and large dip from previous result of 2.1%.
Most stocks in the Asia Pacific region rose following Wall Street's Friday rally and robust US jobs data. Federal Reserve non-voter, Bullard, expressed his belief that the Fed will likely increase interest rates in response to predictions of slower inflation declines compared to others. US President Biden is scheduled to meet with House Speaker McCarthy and other top congressional leaders on Tuesday to address the debt limit crisis, according to the Financial Times. European equity futures signal a marginally higher start, with the Euro Stoxx 50 up by 0.1% after a 1.3% increase in the cash market on Friday. The DXY is on the decline, while the EUR/USD and Cable remain supported at 1.10 and 1.26 handles, respectively, and antipodeans continue to outperform.
Australia and New Zealand
- ASX 200 opens +0.5% at 7,254
- Westpac (WBC.AU) reports H1 (A$) net 4.00B, up from 3.28B YoY [vs 3.82Be], and revenue of 11.0B, up from 10.2B YoY.
- Australia's foreign reserves for April increased to A$92.4B, compared to A$87.5B in the previous month.
- Australia's Treasurer Chalmers confirms an energy rebate of up to A$500 for millions of Australians in the upcoming Tuesday budget.
- NAB Business Confidence for April stands at 0, compared to -1 in the previous month.
- Building approvals for March in Australia declined by -0.1%, compared to the expected 3.0% increase.
- Australia's Treasury's final report on the Petroleum Resource Rent Tax recommends delivering a fairer return from offshore liquefied natural gas projects while limiting impacts on investment incentives and risks to future supply.
China and Hong Kong
- Hang Seng opens +0.4% at 20,128 and Shanghai Composite opens +0.2% at 3,340.
- Hong Kong's foreign reserves for April decreased to $427.4B, compared to $430.8B in the previous month.
- China's foreign exchange reserves for April increased to $3.205T, up from $3.184T in the previous month. The gold portion of reserves has risen for the 6th straight month.
- China's cabinet approved policies for the purchase and use of new energy vehicles (NEVs).
- China's PBOC injected CNY2.0B in 7-day reverse repo and set Yuan reference rate at 6.9158.
- The China - Central Asia Summit will be held on May 18-19 in northwestern Shaanxi Province.
- China Agriculture Ministry launches a law enforcement campaign to stabilize grain supply in 2023.
- Alibaba (9988.HK) Co's logistics unit Cainiao aims to raise up to $2B in Hong Kong IPO in early 2024.
- The recent campaign in China to restrict overseas access to CN data sources is related to US think tank reports, aimed at ensuring control over 'narratives about China'.
Japan and South Korea
- Nikkei 225 opens -0.2% at 29,095.
- Japan's April final PMI Services confirmed a 7th month of expansion, with the quickest rate of expansion since October 2013.
- Bank of Japan (BOJ) reiterates the importance of continuing with the current monetary easing, as agreed by members in its March minutes.
- Bank of Japan (BOJ) offers to buy 5-10 year JGBs at a fixed rate of 50bps and opens a window to buy an unlimited amount of 10-year JGBs at 0.50%.
- Kospi opens +0.7% at 2,518 in South Korea.
- Japan PM Kishida meets with South Korean Pres Yoon for a summit in Seoul.
Other Asia
- Taiwan's foreign reserves for April increased to $561.1B, compared to $560.3B in the previous month. April CPI YoY is 2.4%, beating the expected 2.2%.
- Philippines' unemployment rate for March decreased to 4.7%, compared to 4.8% in the previous month.
- Indonesia's foreign reserves for April decreased to $144.2B, compared to $145.2B in the
Here is a more professional and streamlined version of the information provided:
North America
- President Biden has not ruled out invoking the 14th Amendment to avoid a US default, but has not made a decision on this option yet, according to an NBC interview. This marks the first time Biden has officially not ruled out such an option.
- The White House is reportedly considering a short-term extension of the debt ceiling into the fall, but it is seen as a last resort option, according to CNBC.
- The Federal Deposit Insurance Corporation (FDIC) is reportedly considering offering loss-sharing arrangements with private equity firms and other non-banks to help bolster bids for failed banks, according to press reports.
- The Federal Reserve will release its Semi-Annual Financial Stability Report on Monday at 16:00ET.
- The March Consumer Credit report shows an increase of $26.5 billion, surpassing expectations of $17.0 billion and the previous month's $15.3 billion. Revolving credit rose by $17.6 billion, more than triple February's increase and the second-highest monthly rise on record.
- PacWest Bancorp has cut its dividend by 96% to $0.01 from $0.25, citing current economic uncertainty, recent volatility in the banking sector, and potential changes in regulatory capital requirements.
Europe
- In the UK local elections, the Conservatives have lost 999 seats with just nine councils left to declare, according to Sky News.
- The April Construction Purchasing Managers' Index (PMI) for the UK was 51.1, slightly above expectations and the third consecutive month of expansion.
- The European Union (EU) has proposed sanctions on Chinese companies accused of selling military-related equipment that could be used to support Russia. Companies mentioned include 3HC Semiconductor, King-Pai Technology, Sinno Electronics, Sigma Technology, Asia Pacific Link, Tordan Industry, and Alpha Trading Investments, according to the Financial Times.
- The Eurozone's March retail sales figures show a monthly decrease of 1.2%, below expectations of a 0.2% decrease, and a year-over-year decrease of 3.8%, lower than expectations of a 3.3% decrease.
In terms of upcoming events, German Industrial Output, EZ Sentix, Fed Senior Loan Officer Survey, NY SCE, ECB Survey of Monetary Analysts, Speech from ECB’s Lane, and earnings from PayPal are the most notable. The UK will observe a holiday, but the desk will be open as usual.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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