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Breakfast Bites - Wed Apr 12, 2023

Rise and shine everyone

It’s CPI Day - released at 8:30amET. We also have the FOMC minutes being released at 2pm ET. It should be interesting to see the comments on the banking crisis. I’m sure there was far more discussion than what we heard during the press conference.

US futures are slightly flat, after taking a dive before the close yesterday. Tech however, remains flat with big tech slightly down. Bitcoin is down from yesterday but, just crossed back over $30,000. Gold and Oil are slightly higher while the USD Index is slightly weaker. Bond yields are slightly higher as well.

Everyone is waiting for the latest inflation numbers.

Asia and Australia

  • Asian equities mixed Wednesday. Japan set to close with a fourth successive day of gains, Australia also higher again. Greater China mixed with Hang Seng lower, Shanghai higher.

  • China's government bonds extended a recent rally with 10Y yield dropping to 2.81%, 12 bp off this year's peak.

  • Yuan's share of trade finance doubles since beginning of Russia's war in Ukraine

  • Beijing says Taiwan heading for stormy seas under President Tsai

  • New Zealand house prices see largest quarterly fall in more than 15 years (NZHerald) but retail card spending rises in March

Europe, Middle East, Africa

  • European equity markets firmer. Media, Autos/Parts and Industrial Goods/Services lead; Travel/Leisure, Technology and Basic Resources lag

  • ECB's Villeroy appeared to harden his tone in remarks late Tuesday, warning the Eurozone is at risk of inflation getting entrenched above 2% and faces a "long-distance race" to get it under control

  • UK labor market tightness shows signs of easing

The Americas

  • Carmax reported a miss on revenues yesterday and yet the stock price rallied about 9.6% on posting a surprise profit in Q4 (Feb) after two-straight quarters of double-digit earnings misses.

  • American Airlines issues raised guidance for Q1 (Mar), sees EPS of $0.01-0.05 from $0.00 vs. $0.05 S&P Capital IQ Consensus. They report on 20 April 2023

  • S&P 500 witnessing its biggest pre-earnings rally since early 2009 as traders retain faith companies will deliver on profits

  • Emerson Electric nears $8 billion deal for National Instruments

  • Tesla to build battery storage site in Milton Keynes, UK

  • GM to announce an investment in lithium mining to help ensure long-term supplies


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


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