As of Thu, Apr 11, Singapore Time zone UTC +8
Dollar Index -0.11%, $96.90
USDJPY, -0.14%, $110.99
EURUSD, +0.11%, $1.1276
GBPUSD, +0.27%, $1.3097
USDCAD, -0.06%, $1.3321
AUDUSD, +0.61%, $0.7167
NZDUSD, +0.33%, $0.6768
U.S. Treasuries finished the day higher, helped by the notion that the Fed will stay put. The 2-yr yield decreased three basis points to 2.31%, and the 10-yr yield decreased two basis points to 2.48%. The U.S. Dollar Index declined 0.11% to 96.90. WTI crude rose 0.8% to $64.56/bbl amid reports that OPEC oil production fell to its lowest level in four years.
The European Central Bank’s (ECB) rate decision and the minutes for the FOMC March meeting provided no surprises for the market. In short, both acknowledged risks to the economic outlook, the ECB said it will keep interest rates unchanged (0.00%) through at least the end of 2019 and the bank stands ready to adjust all instruments as necessary, while the Fed remains content to operate in a wait-and-see mode. U.S. Consumer Price Index for March (0.4% m/m vs expected 0.3% m/m), showed the core rate of inflation moderate on a year-over-year basis to 2.0% from 2.1% in February. This moderation helped strengthen the Fed’s stance to keep a patient mindset, which further increase the appeal for risk assets.
In Brexit, EU sources have confirmed that there will be an article 50 extension to 31 October with a review of British cooperation to determine whether there should be an earlier exit on 30 June – the date Theresa May originally asked for. The June “break clause” has been put in to appease France, as President Emmanuel Macron wanted assurances that the UK would conduct European elections properly.
S&P500, +0.35%, 2,888.21
Nasdaq, +0.57%, 7,611.49
Nikkei Futures, -0.42%, 21,648.0
S&P 500 gained 0.35% on Wednesday, as moderating inflation and assurance from central banks to keep rates on hold provided the broader market some support. Stocks drifted with modest gains throughout the day as the market digested the news. A turnaround from the S&P 500 financial sector (+0.3%) and an announcement from Treasury Secretary Steven Mnuchin that the U.S. and China have “pretty much” agreed to an enforcement mechanism helped solidify the positive bias.
Leadership from heavily-weighted information technology sector (+0.7%) was a major contributor to the day’s advance. On a related note, Apple (AAPL 200.62, +1.12, +0.6%) was downgraded to Reduce from Hold at HSBC, but the stock was able to brush off early weakness to finish higher.
In other corporate news, Delta Air Lines (DAL 57.86, +0.91, +1.6%) beat earnings estimates and increased its full-year revenue growth outlook. Shares of Lyft (LYFT 60.12, -7.32) dropped 10.9% amid news that Uber (UBER) is expected to disclose its IPO prospectus (S-1 filing) on Thursday.