All eyes are now on the U.S. consumer price index report
U.S. stocks hit a one-month low overnight amid the ongoing speculation that rising inflation pressure could prompt interest rate hikes sooner rather than later despite the Fed’s Powell has been steadfast in his view that it’s too early to talk about policy changes. On the data front, March job openings rose to 8.1 million, the highest number recorded since December 2000. Still, the S&P 500 fell 0.87%, the Dow Jones Industrial Average sank 1.36% while the Nasdaq Composite lost just 0.09%.
Asian stocks were mixed on Wednesday, with China’s Shanghai Composite and Hang Seng in Hong Kong gaining 0.61% and 0.78%, respectively. The Kospi in Seoul shed nearly 1.5% and the S&P-ASX 200 in Sydney fell 0.73%. Japan’s Nikkei 225 shed 1.61%. All eyes are now on the U.S. consumer price index report to be released by the U.S. Labor Department later in the day.
In Europe, equities opened little changed before regaining some positive momentum after their worst selloff this year witnessed on Tuesday. The pan-European STOXX 600 index rose 0.1% in early trade after shedding nearly 2% on Tuesday. In individual stocks, German lender Commerzbank rallied over 6% after the bank beat expectations for first-quarter profit and raised its revenue outlook.
Meanwhile, the dollar is marginally higher against major rivals ahead of inflation data. EURUSD peaked at 1.2180 yesterday before retreating to the 1.2115 zone earlier on Wednesday. The euro was unaffected by German CPI data that came in line with expectations. Later in the day, the selling pressure surrounding the pair could intensify if the report out of the United States points to a rise in inflation. If so, EURUSD could sink under the 1.2100 figure by the end of the trading day.
