In Asia stocks were lower on Wednesday, after accelerating U.S. inflation and comments from Federal Reserve officials that rekindled prospects of an interest rate rise as early as June.
The Nikkei index was 0.8% lower at 16,517.71 . China’s CSI 300 fell 0.9% and the Shanghai Composite index lost 1.2%. Hong Kong’s Hang Seng also fell 1.2%.
The yen firmed against the dollar on Wednesday after data showed Japan’s economy unexpectedly expanded at the fastest pace in a year in the first quarter, but later gave up most of its gains on views that more stimulus is needed to keep growth on track.
The EUR/USD was 0.3% lower at $1.1284.. The GBP/USD lost 0.2% to $1.4431.
Oil prices were trading higher on Wednesday as supply disruptions and output cuts continued to tighten the market, although traders cautioned that high global crude inventories were still weighing on markets.
International Brent crude futures were trading at $49.31 per barrel, 3 cents above their last settlement, while U.S. WTI crude futures were unchanged at $48.31 a barrel.
US stocks fell on Tuesday as investors boosted their bets on the Federal Reserve raising rates later this year, while Home Depot (NYSE:HD) dragged on indexes following its quarterly report. The S&P 500 lost 0.94%.
Home Depot boosted its sales and profit forecasts for the year after a stronger-than-expected first quarter. But its shares fell 2.5% and were among the biggest drags on the S&P 500 and the Dow.
AbbVie (NYSE:ABBV) fell 3.5% after Coherus said the U.S. Patent and Trademark Office agreed to review its petition to make a copy of AbbVie’s top-selling drug. Coherus jumped 15.9%.
Short-dated U.S. Treasury yields rose on Tuesday after data showed the nation’s consumer prices at their strongest in more than three years, pushing traders to price in a greater chance that the Federal Reserve could raise interest rates.
Two-year Treasury notes rose nearly four basis points from late Monday to 0.823%. Benchmark 10-year notes fell 2/32 in price to yield 1.760%. Thirty-year bonds rose 8/32 in price to yield 2.588%.
Economic Calendar
- 09:30 GMT+1 UK Average Earnings Index 3m/y
- 09:30 GMT+1 UK Claimant Count Change
- 15:30 GMT+1 US Crude Oil Inventories
- 19:00 GMT+1 US FOMC Meeting Minutes
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