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US stocks mixed. Oil under $100, Asian markets set to open lower

stock markets

Asian equity markets are set to open lower following a seesaw session in the US stocks overnight. Wall Street curtailed early gains and finished mixed ahead of the key CPI data due for release tomorrow. Tech stocks rebounded on dip-buys. The Fed officials reaffirmed the roadmap of a 50-basis points rate hike in the next few meetings and believe the economy is in a good shape to take higher rates. However, the broader sentiment is too fragile to recover from a cloudy economic outlook. Inflation is widely expected to be moderated in April, but any disappointing figure could trigger a further selloff in the risk assets.

AU and NZ day ahead

Global headwinds continue to pressure the regions’ stock markets. Rising rates and China’s slowing growth are the major factors that weigh on sentiment.

SPI futures slid 0.11%, pointing to a lower open in the ASX. The NZX 50 was up 0.09% at the open but suffered from the global equity’s selloff the last two trading days, finishing at 11,229.45 on Tuesday, the lowest seen since June 2020.

Company Earnings:

Pushpay FY earnings were reported at US$62.4 million, in line with expectations. Customer number increased by 31%, to 14, 508. Operating revenue grew 13%, to US$202.8 million. The company expects double-digit revenue growth in FY23 and strong FY24 growth. Its shares dropped 2.24%, to NZ$1.31 at the NAZX open.

The key events and data today:

Australian Westpac consumer sentiment – 10:30 am EAST

Spark is seeking indicative bids for as much as 70% of its mobile phone tower business - AFR

US

The broader markets cut early gains as the tech-led rebounding lost steam at the close. Nasdaq lost 25% year to date, officially falling into a bear market. S&P 500 finished flat at 4,000 after hitting the fresh year low at 3,957.

Dow (-0.27%), S&P 500 (+0.25%), Nasdaq (0.98%)

Biggest Winners:

Technology (+1.62%), Communication services (0.9%), Energy (0.93%)

Mega-caps rebounded on dip-buys.

Apple (+1.52%), Microsoft (+1.81%), Alphabet (+1.61), Meta Platforms Inc. (+ 0.66%), Amazon (+0.05%), Netflix Inc (+2.61) Tesla (+1.6%), Nvidia (+3.73%). 

Biggest losers:  

Utilities (-1.25%), Financials (- 0.74%), Consumer Staples (-0.76%)

Major banks fell due to weak economic outlooks.

JPMorgan Chase (-2.44%), Wells Fargo (-2.02%), Citigroup (-2.34%), Goldman Sachs (-1.28%)

Company earnings:

Peloton slid 9% on widened losses and weak guidance. The company lost US$2.27 per share vs. -US$0.83 expected. Revenue is at US$964.3 million, short of the expectation of US$972.9.

Coinbase shares tumbled 10% in the after-hours trading on a net loss of US$430 million. The crypto exchange guides for lower trading volume in the second quarter.

EU

The Europe major indices closed higher along with the early US equities’ positive turnaround.

The Stoxx 50 (+0.97%), FTSE 100 (+0 37%), DAX (+1.15%), CAC 40 (+0.51%).

Commodities

Crude oil prices fell for the second trading day on China’s growth concerns and the broader risk-off sentiment. The WTI futures fell under the $100-mark.

WTI: $99.44 (-3.23%), Brent: $102.16 (3.26%), Natural Gas: $7.30 (+5.11%)

Precious metals continue to slide on a strong USD.

Spot Gold: $1,838.44 (-0.85%), Spot Silver: $21.27 (-0.53%)

Algaculture commodities were slightly up.

Wheat: $1,092 (+0.00%), Soybean: $1,592 (+0.44%), Corn: $775.25 (+0.42%).

Currencies

USD strengthened, while commodity currencies fell further on moderating export prices.

US dollar index: 103.935 (+0.24%)

EUR/USD: 1.0528 (-0.28%)

USD/JPY: 130.44 (-0.10%)

USD/CAD: 1.3029(+0.15%)

AUD/USD: 0.6939 (-0.17%)

NZD/USD: 0.6290 (-0.65%)

Treasuries

Bonds yields slid on risk-off sentiment.

US 10-year: 2.99%, US 2-year: 2.60%.

Germany bund 10-year: 0.99%, UK gilt 10-year: 1.85%.

Australia 10-year: 3.56%, NZ 10-year: 3.78%.

Cryptocurrencies

The Crypto markets cut early gains and finished lower. The whole market cap was down 1.56%, to US$1.41 trillion.

Bitcoin: $30,852 (-1.45%)

Ethereum: $2,305 (-0.25%)


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