The CPI is expected to have increased 0.3% in March on a month-over-month basis
US stocks saw a mixed close on Tuesday as investors were cautious ahead of major events of the week including an update on inflation at the consumer level which is expected to have increased 0.3% in March on a month-over-month basis. The report is slated for release later today. Apart from other inflation data, this week will also bring profit reports from several big US companies including JPMorgan Chase. The Dow Jones Industrial Average closed just below the flatline overnight, while the S&P 500 edged up 0.1%, and the Nasdaq Composite added 0.3%.
In Asia, equities were mixed-to-higher on Wednesday as investors were unfazed by a rating downgrade to China by Fitch. However, the announcement triggered some sell-off in Chinese markets. Fitch affirmed China’s sovereign rating at ‘A+’ even though the outlook was downgraded to negative and it forecast economic growth this year would slow. As such, the Shanghai Composite index slipped 0.7% during the session. Hong Kong’s Hang Seng gained 1.9%, Tokyo’s Nikkei 225 gave up 0.49% and the S&P/ASX 200 in Sydney gained 0.31%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.48%.
In currencies, the US dollar holds steady on Wednesday after yesterday’s brief slide below the 104.00 figure. The greenback has been struggling to attract demand after peaking above 105.00 last week, lacking the bullish momentum at this stage. However, should the inflation report surprise to the upside, the dollar may jump across the market as higher consumer prices would add to doubts surrounding a potential Fed rate cut in the coming month. On the upside, the nearest resistance now arrives in the 104.20 area, followed by the 104.45 local barrier.
Elsewhere, the bitcoin price retreated during the previous session to turn steady on Wednesday. At the start of the week, the ascent was capped by the $72,700 zone. During the subsequent retreat, the BTCUSD pair dipped below the $70,000 psychological level that represents the immediate upside target for the time being. Volatility in the cryptocurrency market could remain elevated in anticipation of a halving event that is anticipated to take place on April 20. In the immediate term, the digital coin needs to hold above $69,000 in order to refrain from a deeper decline.
