Markets Overview

  • ASX SPI 200 futures up 0.7% to 7,286.00
  • Dow Average up 0.2% to 33,301.93
  • Aussie little changed at 0.7127 per US$
  • U.S. 10-year yield rose 10.8bps to 2.8299%
  • Australia 3-year bond yield rose 3bps to 2.68%
  • Australia 10-year bond yield fell 5bps to 3.06%
  • Gold spot down 1.0% to $1,885.84
  • Brent futures little changed at $105.09/bbl

Economic Events

  • 10:30am: (AU) Australia to Sell A$500 Million 105-Day Bills
  • 10:30am: (AU) Australia to Sell A$500 Million 84-Day Bills
  • 11:30am: (AU) 1Q Export Price Index QoQ, est. 11.0%, prior 3.5%
  • 11:30am: (AU) 1Q Import Price Index QoQ, est. 7.0%, prior 5.8%

U.S. equities rebounded from the worst rout since March, though ended well off session highs as a glut of earnings reports whipsawed sentiment.

The late advance did little to soften what is shaping up to be the worst month for the S&P 500 since March 2020 as the Federal Reserve’s campaign to tamp down inflation forced investors to reprice risk assets. Europe’s energy crisis, China’s struggle to suppress Covid and the war in Ukraine also combined to drive major bourses in Europe and the U.S. to their lowest since mid-March this week.

The ICE U.S. dollar index rose to a five-year high, while the euro touched the weakest level versus the greenback since 2017 as Russia said it will stop natural gas flows to Poland and Bulgaria. European gas prices surged as traders weighed the risk of other countries being hit next, spurring worries over a further spike in inflation and a sharp slowdown in the economy.

Fears that the Fed would tip the world’s largest economy into a recession have plagued markets all week, all while activity slows in China as Covid lockdowns bite. Treasuries retreated but the 10-year yield, at about 2.84%, remains lower for the week. Gold fell 1%.

Other News

A California lawmaker says police in Santa Ana have been playing loud, copyrighted music so that video of them on patrol would likely be taken down if it was posted online.

Councilmember Johnathan Ryan Hernandez said at a City Council meeting Tuesday he wants lawmakers to ban the alleged practice after a viral video from early April showed officers apparently blasting loud music on a residential street in Santa Ana while investigating a report of a stolen vehicle late at night. Hernandez is seen in the video interacting with an officer from the Santa Ana Police Department, after a different person asks police to stop playing the music.

Disney songs, such as “You’ve Got a Friend in Me” from “Toy Story” and “We Don’t Talk About Bruno” from “Encanto,” can be heard in the video posted to Santa Ana Audits, a YouTube channel dedicated to filming interactions with Santa Ana Police.

Videos posted to YouTube and other video hosting sites are often monitored for potential copyright infringement and risk being removed, therefore limiting how widely the content, like the Santa Ana police interaction, could be shared online.