Markets slide as new data raises renewed inflation fears

US markets kicked off the post Easter week by giving up ground on what was a winning month for March and a strong first quarter. New inflation data raised concerns that the Fed may struggle to hit its target of three rate cuts by the end of 2024.

The Dow fell 0.6 per cent, the S&P 500 slid 0.2 per cent and the Nasdaq bucked the trend by managing to tip into positive territory closing up 0.1 per cent.

Turning to US sectors, Communications & Energy were the best performers closing up 1.45 per cent & 0.8 per cent respectively. The worst performing sector was Real Estate closing down 1.8 per cent followed by Healthcare down 0.88 per cent.

Investors reacted to the personal consumption expenditures price index, released ahead of the Easter break. The Core PCE, which excludes food and energy, showed inflation rose 2.8 per cent which was in line with expectations on a 12 month basis, however, on a monthly basis the metric was up 0.3 per cent on the previous month which caused some concern.

Treasury yields reacted to the new data by rising on Monday with the benchmark 10-year Treasury yield up more than 12 basis points at 4.317 per cent.

In commodities news crude oil futures rose on reports that the Iranian consulate in Damascus was hit by an Israeli missile strike, which may have killed several high ranking Iranian commanders. WTI closed the day up almost 1 per cent.

In local markets, investors will be looking at the release of the latest monetary policy minutes from the Reserve Bank of Australia, which will provide additional colour on the central bank’s decision to leave rates unchanged in March.

Currency

One Australian dollar at 7.35am was buying 64.88 US cents.

Commodities

Gold gained 1.32 per cent. Silver added 0.94 per cent. Copper rose 1.24 per cent. Oil added 0.89 per cent.

Ex-dividends
Harvey Norman (ASX:HVN) is paying 10 cents fully franked
Magontec Limited (ASX:MGL) is paying 0.6 cents unfranked
Metrics Income (ASX:MOT) is paying 1.46 cents unfranked
Metrics Master (ASX:MXT) is paying 1.35 cents unfranked
NB Global Corporate Income Trust (ASX:NBI) is paying 1.2179 cents unfranked
Regal Partners Ltd (ASX:RPL) is paying 5 cents fully franked

Dividends payable
Gold Road Resources Ltd (ASX:GOR)
Capitol Health Ltd (ASX:CAJ)
Mercury NZ Ltd (ASX:MCY)
Integral Diagnostics Ltd (ASX:IDX)
HMC Capital Ltd (ASX:HMC)
Freightways Group Ltd (ASX:FRW)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

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