Daily Digest: Wednesday 3rd April
Europe
The FTSE 100 (FTSE) managed to close marginally up, rising by 0.03% to 7,937.44. Three of the top ten index performers during the session were banks, with UK listed shares in Barclays (BARC.L) rising by 2.4%, NatWest (NWG.L) by 2.10%, and HSBC (HSBA.L) by 1.56%.
The EU flash CPI estimates for the month of March came in at a positive shock, drawing most of the attention through the session. The print indicated a 2.4% increase in the price of the Eurozone CPI basket during the month, 0.1 percentage points below analyst expectations of 2.5%. This signals ECB monetary policy successes, and a possible move toward rate cuts heading into Summer.
Following the release, the Pan-European STOXX 600 (€SXXP) rose by 0.29% to 510.02 as traders target new all-time highs. Similarly, the German DAX (€GDAXI) rose by 0.46% to 18,367.72, and French CAC (€FCHI) saw a 0.29% increase to 8,153.23.
Rest of the World
The Nikkei 225 (¥N225) slipped off Tuesday’s support, as wider interest rate speculation stunts momentum. The Nikkei fell 0.97% to 39,451.85 as the yen continued to depreciate against the US Dollar, falling as low as ¥151.953 on Wednesday afternoon breaking new 52-week lows. The Shanghai Stock Exchange Composite Index (¥SSE) also traded down falling 0.18% to 3,069.30, a second consecutive session of declines. India’s Nifty 50 (₹NSEI) also failed to break its downward momentum, with the index falling 0.08% to 22,434.65. Equity performances through Thursday should be clearer, as US Fed Chair Powell’s address is priced into the market.
Cryptocurrencies
Cryptocurrency losses cooled through Wednesday, with total market capitalisation remaining at $2.48 trillion marking a 0% 24hr change. Bitcoin once again tested support around the $64,500 level before rising to $65,971.99 by 21:00 GMT marking a 0.15% 24hr decrease.
Commodities
Crude oil prices continued to rise through Wednesday, despite weekly US crude inventories rising 3.2 million barrels against analyst expectations of a 300,000 barrel drawdown. This is the case for the second week running, signalling either an expansion of production supply or demand contraction across US industrials. Crude oil prices reached $85.58 per barrel by 21:00 GMT, a 0.50% daily increase.
Gold continued to rally, breaking new highs as prices rose 1.56% to $2,317.50 per ounce. Trading was stimulated through the afternoon by Chair Powell’s address stating the US is on the right course for considering interest rate cuts. He also reiterated the narrative that the Fed will remain on a ‘cautious’ path, with any potential increases in inflation ‘disruptive’ for the economy. This move marks a tenth session of increases, as inflation expectations drive the market.
What to watch
UK Services PMI
Eurozone Services PMI
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice