Daily Market Update
US markets surged yesterday after CPI data confirmed a slowing in inflation and brought expectations of a rate cut from the Fed in sharply. The market is now pricing in 52 basis points of rate cuts by the end of the year with the first cut now an 85% chance of coming at the September meeting.
All three of the major indices leapt higher to close at record level after the headline CPI number came in 0.1% lower than expected in April, Retail Sales numbers, released at the same time confirmed a slowing in the US economy as they came in flat against an expected 0.4% rise. The dollar took a big hit on the majors with the index losing 0.6%, the UsdJpy notably losing nearly 1.3% to take it back to more comfortable levels for Japanese authorities.
Traders are bracing themselves for a busy day ahead as the market continues to digest the reaction to the data out of the states over the next few sessions as well as dealing with further risk events due on the event calendar.
| Market | Daily Change | Close |
| Dow | +0.88% | 39,908 |
| S&P | +1.17% | 5,308 |
| Nasdaq | +1.40% | 16,742 |
| USD | -0.6% | 104.35 |
| US Treasury – 2 Year | -8 | 4.736% |
| US Treasury – 10 Year | -9 | 4.356% |
| Oil – Brent | +0.5% | $82.75 |
| Oil – WTI | +0.8% | $78.63 |
| Gold | +1.40% | $2,388 |
Today’s Events AEST:
Asian Session
- 11.30 am – Australian Employment Change and Unemployment Rate
European Session
- 6.00 pm – ECB Financial Stability Review
US Session
- 10.30 pm – US Unemployment Claims
- 10.30 pm – US Building Permits
- 10.30 pm – US Philly Fed Manufacturing Index
- 10.30 pm – US Industrial Production
