top of page

Breakfast Bites - Wed Apr 05, 2023

Rise and shine everyone

Yesterday we had quite the red day for the markets. The JOLTs report declined more than expected following weakest ISM manufacturing headline reading in nearly three years on Monday.

US Futures continue look slightly weaker this morning, alongside the US Dollar. Gold had a fantastic run to $2022 and Crude holds steads at $80-$81. The Vix is higher this morning, as is Bitcoin at $28,544. Long bonds showing strength after rallying yesterday, junk bonds showing weakness.

Asia and Australia

  • Asian markets ended mixed Wednesday with many exchanges closed for a holiday. Nikkei and Topix both sharply lower on read through from Wall Street's weak session. Australia closed a few points higher for its eighth consecutive day of gains, New Zealand stocks lower. South Korea ended higher led by battery names.

  • RBNZ surprises market with 50bps rate hike. We had reported yesterday that the consensus was for a 25-bp hike.

  • BoJ's Momma says recent drop in global bond yields created favorable conditions to scrap yield curve control program. This will certainly be an interesting move.

  • RBA Governor Lowe says April pause does not imply rate hikes are over

Europe, Middle East, Africa

  • European equity markets mixed. Utilities, Healthcare and Food/Beverage stocks lead, while Real Estate, Construction/Materials and Basic Resources lag.

  • The latest PMI update showed the Eurozone economy is being supported by the services sector. Final PMI reading at 55.0 in March versus flash 55.6 and prior 52.7. Numbers remain in expansionary territory.

  • Germany factory recorded a big jump in February, up 4.8% m/m versus consensus for 0.3% gain and prior 0.5% increase, revised down from 1.0%

The Americas

  • Cleveland Fed President Mester sees fed funds rate moving above 5% and staying there

  • BoE chief economist Pill says the central bank still needs to 'see the job through' on inflation

  • J&J to pay $8.9B to settle talc-cancer complaints from ~60,000 claimants

  • Walmart reiterates guidance at Investor Community Meeting

  • FedEx Announces Planned Consolidation of Operating Companies - Raj Subramaniam to continue serving as CEO. Dividend raised by 10%

  • Conagra reports and earnings beat and raises guidance. Reports margin expansion.

  • TD becomes biggest bank short due to exposure housing slowdown and ties to US market through stake in Charles Schwab

  • Brazil's finance chief considering credit stimulus to counter effects of higher interest rates to help companies with investing and growth.


(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)


bottom of page