Global equities failed to maintain gains while U.S. Treasury yields eased after inflation data readings surpassed investor expectations.
The reading for the US monthly consumer price index (CPI) rose 1.2% for March, meeting forecasts, the biggest increase in 6 -and -a -half years, further strengthening the Federal Reserve’s (Fed) expectations to raise interest rates by 50 basis points next month.
Meanwhile, the 10-year Treasury yield benchmark failed to continue its uptrend for the 9th session when it fell 6.1 basis points to 2.721% as inflation readings were priced and reflected market uneasiness over the Fed’s aggressive response.
Glenmede vice president of investment strategy Mike Reynolds said while inflation was still a key macro narrative they saw some encouraging signs emerge.
The Wall Street market saw the Dow Jones Industrial average index fall 0.02%, the S&P 500 lost 0.02%while the Nasdaq Composite added 0.12%.
The European pan STOXX 600 index lost 0.35% and the MSCI gauge of worldwide stocks slipped 0.24%.
Jan von Gerich, a chief analyst at Nordea shares the view that the market decided that the central bank was too late and needed to do more in curbing inflation, and moderate volatility in equities was not enough to stop it.
Meanwhile, investors were seen waiting for the first-quarter earnings season report for major banks on Wednesday with most expected to report a sharp drop in earnings from the previous year.
Summary on the currency, the dollar index rose 0.26% while the Euro fell 0.53% at $ 1.0825 following the French election while the Yen continued to worsen due to the Bank of Japan's (BOJ) commitment in maintaining ultra -loose policy despite the tightening phase of world monetary policy.
