Equity indices in the US ended the day mixed on a relatively quiet session. The Dow 30 index managed to squeeze out a gain of 18.15 points to 17,926.43 (+0.10%), the S&P 500 index landed 0.36 points up to 2,082.78 (+0.02%), and the Nasdaq was down 1.53 points to 4,945.89 (-0.03%).
US CPI came in weaker than expected, as both the headline and core figures printed 0.1% gains versus the projected 0.2% increases. Meanwhile, initial jobless claims came in lower than expected, indicating positive momentum in the jobs market. The S&P 500 VIX, which is considered a gauge of market uncertainty, is down 0.12 points to 13.72 (-0.87%) to show that risk appetite is still present.
In terms of earnings, Bank of America beat expectations in EPS despite a slide in profits. Alcoa shares are down on mixed earnings figures and job cuts while JPMorgan shares continued to advance on the heels of positive earnings data.
European markets close higher despite cautious BOE
The Bank of England decided to keep monetary policy unchanged as expected, maintaining interest rates at their current levels and keeping the pace of asset purchases. Policymakers discussed the potential risks to growth and stability that a potential Brexit could cause.
Even so, the London FTSE edged 2.21 points higher to 6,365.10 (+0.03%) and the Euro Stoxx 50 was up 19.41 points to 3,058.60 (+0.64%). The German DAX was up 67.55 points to 10,093.65 (+0.67%) and the French CAC 40 ended 21.20 points higher to 4,511.51 (+0.47%).
Asian markets shrugging off upbeat Chinese data?
China just printed its Q1 GDP reading, which came in line with expectations of 6.7% growth. Industrial production beat expectations at 6.8% growth year-over-year versus the consensus of a rise from 5.4% to 5.9%. Retail sales improved from 10.2% to 10.5%, slightly higher than expectations of a 10.4% annual increase, while fixed asset investment is up 10.7% year-to-date.
The China A50 index is up 3.73 points to 9,706.22 (+0.03%), the Nikkei 225 index is down 56.68 points to 16,854.37 (-0.34%), and the S&P ASX 200 index is up 17.28 points to 5,135.90 (+0.35%). Yesterday, the Monetary Authority of Singapore announced that it won’t tolerate further appreciation of the Singapore dollar versus the US dollar while the People’s Bank of China set the yuan trading range significantly lower, reviving fears of currency intervention in the region.
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