Market Commentary – April 5, 2022

Kevin Jock

5th April 2022

The U.S. equity market started the week higher, with all the major indices hiked at the market close. Such advance is led by the tech stocks, especially Twitter as it rocketed by 27% after the announcement that Elon Musk has taken a 9.2% stake in the company. The Chinese tech conglomerates rose as well on optimism that they could avoid being delisted from US markets. All such positive news propelled the Nasdaq indices to rose by 1.9%, while the S&P 500 driven higher by 0.81%.

European shares gained on Monday as well, led by tech stocks as this sub-sector rallied more than 2%. The FTSE 100, CAC 40 and DAX indices advanced 0.28%, 0.7% and 0.5% respectively. The French president Emmanuel Macron called for further sanctions against Russia after reports of mass civilian killings by the Russian forces at Bucha, which is a city to the north-west of Kyiv. Moscow has obviously denied such accusations and the truth is yet to be found out.

The Asian market is muted on today as it seems did not follow up with the rallies from Wall Street overnight, with both Australia’s ASX 200 and Japan’s Nikkei 225 indices rose marginally by 0.19% only. Both the mainland Chinese and HK’s markets are closed due to the local public holiday, it will resume open on tomorrow.

Price of WTI crude rose again on Tuesday as both the U.S. and Europe planned to further punish Russia over alleged war crimes in Ukraine, which could cause supply-side issues. Gold and bitcoin are trading in a tight range-bound market today.

AUDUSD chart (2022.4.5)

Figure 1 (Source: IS Prime) AUD/USD daily: The Australian dollar rallied to nine-month highs today, after the RBA opened the door to the first interest rate hike, which is a major surprise to the markets.

 Headliner to Review

  • Number of unemployed people registered by the end of March decreased by 2,921 in Spain, which is a large deviation from the forecasted figure of an increase of nearly 15.3K people.

Headliner to Watch

  • We expect the month-to-month PPI figure in the EU to further increase by 1.2%.
  • The U.S. crude oil inventories figure is due to release on Wednesday. Previously, the figure dropped by 3.4M barrels.

Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice.

Authors:
Antony Tan
Kerry Man