Market Summary
Hotter-than-Expected US CPI Weighs on Sentiment: Yesterday’s hotter-than-expected CPI print triggered an initial rally in the dollar, which soon reversed as markets assessed the impact of more aggressive Federal Reserve tightening on equities. The report pointed to broad-based inflation across goods and services, dealing a blow to Republicans ahead of the US midterm elections. Treasuries initially sold off before recovering on safe-haven demand, with the 10-year yield trading below 5.10%, while US equity futures pointed to a weaker open.
AI Concerns Drive Equity Selloff: Equities declined amid weaker risk sentiment and growing concerns over whether the billions invested in artificial intelligence will deliver sufficient returns. The MSCI Asia Pacific Index fell 3.2%, with chipmakers Samsung Electronics and SK Hynix dropping 9% and 11%, respectively. Despite robust earnings, stretched valuations have left technology stocks vulnerable to sharp corrections, with Nasdaq 100 futures falling 1.1%.
Oil Declines as Middle East Concerns Ease: Brent crude slipped to $104.30 a barrel as concerns over the Middle East eased. Meanwhile, gold recovered to $4,140 an ounce as investors sought safety amid heightened market uncertainty.
Economic Calendar: Attention now turns to US PPI and labour market data this afternoon, with Fed Chair Kevin Warsh’s remarks tomorrow also under close scrutiny, despite his pledge not to steer monetary policy expectations.
Economic Calendar
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US PPI
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US Labour Market Data
Key Market Moves Today
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S&P 500 Futures: -0.4%
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Nasdaq 100 Futures: -1.1%
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MSCI Emerging Markets Index: -3.6%
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Bloomberg Dollar Spot Index: -0.3%
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Spot Gold: +0.8%
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WTI Crude: -1.1%
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