US equities were mixed to start the week on Monday with investors awaiting key inflation data later this week.
United States
There was little economic data to guide investors overnight, with the S&P500 down just -0.04% along with the Dow Jones -0.03% while the Nasdaq Composite edged up 0.03%. Treasury yields extended gains following Friday’s blowout jobs report, with the 2 and 10-year rates up 4 and 2 basis points respectively.
Traders are awaiting inflation data for March due to be released on Wednesday, forecasting to show headline prices rose 3.4% over the year and core prices rose 3.7%. For tonight, there are no notable data releases. Meanwhile, economists at JPMorgan pushed back their forecast for the first rate cut in this cycle, seeing it as occurring in July instead of June following the March employment report.
Europe
European equities rose on Monday, catching up to gains that were missed as part of the US session on Friday. The Euro Stoxx 600 rose 0.47% along with the DAX 0.79%, CAC 0.72% and FTSE100 0.41%. There was no data overnight and there are no notable releases tonight either, with the ECB rate decision on Thursday the focus. While no changes are expected, investors will be looking for clues as to when the central bank may cut rates with financial markets pricing in either the June or July meeting.
Australia
The ASX is expected to rise this morning, with ASX200 futures up 35 points or 0.48% to 7,865. The index rose 0.2% on Monday with gains in materials 0.38% and health care 0.56% offsetting a -1.24% drop in energy. In individual names, Life360 was a notable performer, climbing 16.8% after updating a record 4.8m active users were recorded in the first quarter of the year, ahead of expectations. Qantas rose 4.8% after beginning a $448m buyback program, as well as announcing a revamp to its frequent flyer program. Beach Energy slumped -15% after saying it expects costs at its WA gas plan to increase by $200m following problems discovered at the site. In focus this morning is the latest Westpac consumer confidence index for April due out at 10:30 AEDT.
Commodities
Oil prices started the week on a softer note with both WTI and Brent crude down -0.47% and -0.73% respectively, with some market analysts attributing the move to the withdrawal of some troops from Gaza by Israel. Iron ore futures on Monday climbed 6.01% and are up a further 0.81% to US$105.10 this morning, with copper also 1.32% higher. Gold climbed 0.36% to US$2,338 an oz, with silver 1.23% higher along with Bitcoin 3.38%.
Economic Calendar
Australian Consumer Confidence (MoM Apr) 10:30
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
