Australia

Australian shares are set to decline today following losses on Wall Street. Although data confirmed easing consumer prices in March, inflation remains well above the Federal Reserve’s target. The likelihood of another 0.25% interest rate hike weighed on investor sentiment.

ASX futures were hinting 6 points or 0.1% down as of 6:00am on Thursday, suggesting a negative open.

US equities slumped Wednesday, giving up gains from earlier in the session.

Although stocks began the day higher after March data showed easing inflation, the S&P 500 fell 0.4%, the Dow Jones Industrial Average gave up 0.1% and the Nasdaq Composite slipped 0.9%.

The consumer-price index (CPI), a closely watched measure of inflation, rose 5% last month, the Labor Department said Wednesday. The report offered some encouragement to investors. Inflation is continuing to pull back from its multi-decade high hit last June. That should, in many investors' eyes, keep the Federal Reserve on course to finish its interest rate increase campaign within the year.

Nonetheless, inflation remains well above pre-pandemic levels, and the central bank itself has yet to rule out further rate increases. Nearly all 18 officials who participated in the Fed's meeting last month projected that the central bank would likely raise interest rates one more time this year.

In commodity markets, Brent crude oil added 2.0% to US$87.29 a barrel while gold advanced 0.6% to US$2,014.89.

Australian government bonds moved up, with the 2 Year yield increasing to 2.91% and the 10 Year yield climbing to 3.24%. Yields on US Treasury notes remained lower, with the 2 Year slipping to 3.98% and the 10 Year falling to 3.41%.

The Australian dollar climbed to 66.92 US cents after previously closing at 66.50. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged down to 95.68.

Asia

Chinese shares closed mixed as investors entered into a wait-and-see mode. Cooler March inflation dampened some investors' hopes, as it indicated that the post-Covid recovery momentum remains weak. The telecom sector, which has racked up huge gains so far this year, gained in Wednesday's session. China Telecom rose 6.0% and China Mobile added 2.8%. Liquor producers and travel-related stocks declined. Kweichow Moutai dropped 2.9%, Wuliangye Yibin declined by 2.6% and China Tourism Group Duty Free Corp. fell 1.8%. The Shanghai Composite Index gained 0.4% to close at 3327.18. The Shenzhen Composite Index also ended 0.4% higher, while the ChiNext Price Index declined by 0.4%.

Hong Kong stocks ended lower, with the benchmark Hang Seng Index declining 0.9% to settle at 20309.86. Chinese tech giants led losses. Videogame developer Tencent slumped 5.15%, while e-commerce platform JD.com dropped 3.5% and rival Alibaba lost 3.3%. Food delivery company Meituan also shed 3.25%. Analysts said investors are likely focusing on upcoming US inflation data, which could influence how soon the Fed will end its tightening cycle and consequently affect investor appetite for riskier assets.

Japanese stocks ended higher, led by gains in machinery shares and trading houses, as the yen weakened and the prospects for further monetary policy tightening diminished. Komatsu gained 3.3% and Marubeni climbed 3.0%. The Nikkei Stock Average rose 0.6% to 28082.70. Investors were focusing on economic data, including US consumer inflation figures due later Wednesday.

India's Sensex index closed 0.4% higher at 60392.77. The closely watched US March CPI data due later today is in focus, as well as corporate earnings for the rest of this week. Gainers on the Sensex included Infosys, which closed 1.5% higher, Tata Motors, which advanced 1.4% and HDFC Bank, which added 1.3%. Power Grid Corp. of India was among decliners, having dropped 1.6%.

Europe

European stocks edged higher following the release of mixed US inflation data. The pan-European Stoxx Europe 600 gained 0.1%, the French CAC 40 added 0.1% and the German DAX closed up 0.3%. Automotive and banking shares were among the session’s biggest risers. Meanwhile, the British FTSE 100 rose 0.5% to 7819 points, with utility stocks among the top risers and mining shares leading declines.

"European markets got an afternoon leg-up to the highs of the day after US CPI came in below expectations, rising 0.1%, with the headline number falling from 6% to 5%," CMC Markets analyst Michael Hewson wrote. "The lower-than-expected number, while welcome, is unlikely to change the likelihood of another 25 basis-point rate hike from the Fed in May, given that core prices edged higher."

North America

US equities slumped Wednesday, giving up gains from earlier in the session.

Although stocks began the day higher after March data showed easing inflation, the S&P 500 fell 0.4%, the Dow Jones Industrial Average gave up 0.1% and the Nasdaq Composite slipped 0.9%.

The consumer-price index (CPI), a closely watched measure of inflation, rose 5% last month, the Labor Department said Wednesday. The report offered some encouragement to investors. Inflation is continuing to pull back from its multi-decade high hit last June. That should, in many investors' eyes, keep the Federal Reserve on course to finish its interest rate increase campaign within the year.

Nonetheless, inflation remains well above pre-pandemic levels, and the central bank itself has yet to rule out further rate increases. Nearly all 18 officials who participated in the Fed's meeting last month projected that the central bank would likely raise interest rates one more time this year.

Wednesday's consumer inflation report "keeps the Fed on track for another rate hike while trying to strike a delicate balance," said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

Corporate news drove swings in some stocks. Shares of Triton International jumped 32.4% after the shipping container leasing company agreed to be bought by Brookfield Infrastructure. The deal values Triton's common stock at about $4.7 billion. American Airlines shares slipped 9.2% after the company cut its guidance for revenue for the first quarter.