US equities were slightly higher on Tuesday with little economic data to guide investors.
United States
The S&P500 edged up 0.13% on Tuesday, along with the Dow Jones 0.08% and Russell 2000 0.19% while the Nasdaq Composite was -0.1% lower. Bond yields were slightly lower after solid demand at a Treasury auction, with the 10 and 30-year rates -3 and -3.3 basis points lower respectively.
In an essay on Tuesday, Minneapolis Fed President Neel Kashkari said the central bank will likely keep interest rates at current levels for “an extended period of time” until officials are confident inflation is on track to target.
Europe
European equities were higher, following a positive lead from Wall Street on Monday. The Euro Stoxx 600 rose 1.14% closing in on record highs, the DAX climbed 1.4% along with the CAC 0.99% and FTSE100 1.22%. Shares in UBS jumped 7.59% after returning to profit following two loss-making quarters, as the integration of Credit Suisse showed sustained progress.
Australia
The ASX is expected to edge up this morning with ASX200 futures 16 points or 0.19% higher to 7,829. The index climbed 1.44% on Tuesday amid broad-based buying with 88.5% of stocks higher and all sectors positive. The gains come after the Reserve Bank of Australia left interest rates on hold at 4.35%, but avoided an increase in hawkish rhetoric some analysts had feared following higher-than-expected inflation in Q1, with Governor Michelle Bullock having a more neutral tone. In line with expectations, the central bank revised its inflation forecast by December to 3.8% from 3.2% previously.
Commodities
Oil prices were modestly lower with WTI and Brent crude down –0.1% and -0.25% respectively. Iron ore futures were -1.18% lower on Tuesday and edging -0.09% lower this morning, with copper also -0.61% weaker. Gold traded -0.44% lower at US$2,313 an oz, silver declined -0.7% while Bitcoin was -0.47% lower.
Economic Calendar
US Wholesale Inventories (MoM Mar) 00:00
Fed Jefferson Speech 01:00
Fed Collins Speech 01:45
Fed Cook Speech 03:30
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.
