Global markets have been hit hard in recent months by concerns that the Ukraine war, a Federal Reserve tightening and China’s tough new Covid-19 restrictions could slow global growth.
Today, the Chinese stock markets are recovering positions due to the possibility that these confinements are having an effect. However, the rest of the Asian stock markets cut positions. Yesterday, US stocks closed lower with the Dow Jones losing 1.19%, the S&P 500 losing 1.69% and the Nasdaq Composite falling more than 2%.
Falls predominate in Europe. The Ibex falls 1.3% and loses 8,500 points. Within the selective, the greatest decreases are for Solaria, Bankinter, Sabadell and Iberdrola. All of them fall more than 2%. Telefónica, Repsol and PharmaMar are the only values that escape burning.
Today, all eyes of the investors will be on the publication of the US CPI data for March, which will be known at 2:30 p.m. Analyst consensus points to a 0.4 percentage point rebound to 8.3% annually. In turn, in monthly terms an acceleration of price levels of 1.2% per month is expected (compared to 0.8% per month the previous month) and of the CPI excluding food and energy of 0.5% per month, just like the previous month.
“Equity markets have been very resilient and quite loose compared to fixed income markets, but we expect at the May Fed meeting there will be some kind of announcement in terms of easing quantitative easing and that is when we might seeing volatility emerging in equities,” Elizabeth Tian, head of equity derivatives at Citigroup in Sydney, told Reuters.
Earlier in the Asian session, the benchmark 10-year Treasury yield rose to 2.8107% compared to a US close of 2.782% on Monday. The two-year yield, rising on traders’ expectations of higher fed funds rates, hit 2.5242% compared with a US close of 2.508%.
In the commodity market, US crude rose 0.85% to $95.09 a barrel while Brent crude rose to $99.18 a barrel, remaining below $100 a barrel.