📆 Tuesday, May 14
► In Europe, stocks are showing minimal movement as investors hold their breath for new inflation data from the United States. Germany's inflation rate remains steady at 2.2%, matching expectations (and preliminary data) and nearing the European Central Bank’s target. The UK sees a slight uptick in unemployment, reaching 4.3% in March, aligning with forecasts. Investors are also closely monitoring developments in BHP Group’s potential takeover of Anglo American, indicating a possible shift in the mining industry landscape.
► US markets remain unchanged, as market participants await the US Producer Price Index. The focus is squarely on inflation indicators, with significant attention on Federal Reserve Chair Jerome Powell’s forthcoming remarks and Wednesday's Consumer Price Index. Market sentiment is tinged with anxiety, with predictions suggesting a possible 1% move in the S&P 500 following the CPI release, signaling investor readiness for potential volatility based on these inflation outcomes. 10-year Treasury yields remain unchanged, reflecting market caution ahead of Powell’s speech and the upcoming CPI data.
► Asian markets present a mixed but slightly optimistic picture, particularly highlighted by gains in Chinese tech stocks ahead of earnings reports from major players like Tencent and Alibaba. In Japan, the 20-year government bond yield hit its highest level since 2013, driven by speculation that the Bank of Japan might cut back on bond purchases, exerting pressure on the weakening JPY. The broader Asian market response remains tentative, awaiting the impact of earnings outcomes, especially with Hong Kong markets closed for the upcoming holiday.
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