Markets Overview

  • ASX SPI 200 futures down 0.5% to 7,318.00
  • Dow Average down 1.0% to 33,530.83
  • Aussie down 1.0% to 0.6627 per US$
  • U.S. 10-year yield fell 9.0bps to 3.4014%
  • Australia 3-year bond yield little changed at 3.13%
  • Australia 10-year bond yield little changed at 3.45%
  • Gold spot up 0.4% to $1,997.34
  • Brent futures down 2.4% to $80.74/bbl

Economic Events

  • 11:30: (AU) 1Q CPI Weighted Median QoQ, est. 1.3%, prior 1.6%
  • 11:30: (AU) 1Q CPI Weighted Median YoY, est. 5.9%, prior 5.8%
  • 11:30: (AU) 1Q CPI Trimmed Mean QoQ, est. 1.4%, prior 1.7%
  • 11:30: (AU) 1Q CPI Trimmed Mean YoY, est. 6.7%, prior 6.9%
  • 11:30: (AU) March CPI YoY, est. 6.5%, prior 6.8%
  • 11:30: (AU) 1Q CPI QoQ, est. 1.3%, prior 1.9%
  • 11:30: (AU) 1Q CPI YoY, est. 6.9%, prior 7.8%

US stocks dropped the most in two months and Treasury yields retreated after First Republic Bank’s disappointing earnings and potential assets sale rekindled worries that the banking crisis has not run its course.

The S&P 500 lost 1.6% Tuesday, with First Republic’s 49% plunge taking the lender’s shares to a record low. Bloomberg News reported the troubled bank, which saw greater-than-expected withdrawals in the first quarter, is exploring divesting up to $100 billion of long-dated mortgages and securities as part of a broader rescue plan.

The two-year Treasury yield tumbled to 3.94% as investors sought the safety of US government debt. Meanwhile, tech stocks rallied in after-hours trading with Microsoft Corp. and Alphabet Inc. higher after better-than-expected earnings.

The Federal Reserve is still expected to raise interest rates by a quarter percentage point when it meets next week, though signs are mounting that the American economy is starting to sputter after a year of aggressive tightening. Data Tuesday showed consumer confidence slipped, while two regional Fed manufacturing reports underwhelmed.

Other News

This guy is good at impressions.

An inmate was remarkably allowed to stroll out the front door of a Washington state jail after fooling guards into thinking he was his cellmate — who was set to be released that day.

Brian Francisco Roman, 26, remains on the run after his not-so-subtle escape from the Cowlitz County jail, the sheriff’s office said.

He made a break for it after a corrections officer went to his cell to contact the inmate scheduled for release, but found all three men — including Roman — asleep.

When the officer called out for the inmate, whose identity is being withheld by cops, Roman — originally jailed for dealing drugs — claimed to be the other person and went with the guard to be processed out of custody, the sheriff’s office said.

Roman was then given his cellmate’s property, including his clothing, keys and wallet, which contained his ID and debit card.

He also signed the discharge paperwork by forging the other inmate’s name, according to authorities.

A surveillance image shows Roman clutching some forms as he left the jail dressed in his cellmate’s clothing.

Jail guards only realized their stuff-up when Roman’s cellmate flagged them down and asked when he was going to be released. It is not clear if he is suspected of aiding his cellmate’s escape.

In their defense, jail staff claimed Roman and his cellmate have similar physical features.

An arrest warrant was subsequently issued for Roman’s arrest, adding charges of escape, criminal impersonation, forgery and theft.

Authorities say he was last seen wearing a blue hoodie, a black shirt, gray sweatpants, and brown slippers.

(New York Post)