Daily Market Bulletin – 5 April 2022
Market Developments
Markets continue to monitor talk of more Western sanctions against Russia and digest news of Elon Musk's stake in Twitter, while the US 10/2 Year Yields remain inverted.
The Reserve Bank of Australia (RBA) held rates steady at 0.1% today, but the policy statement appeared more hawkish, as it dropped the word "patient" and the Aussie jumped. The bank also sees higher inflation over coming quarters. [1]
US President Biden called Mr Putin a war criminal and said that he is seeking more sanctions after allegations of civilian killings in Bucha, which Russia has denied. German Chancellor Scholz also promised new measures against Russia yesterday [3], following other European leaders and officials.
The World Bank downgraded its GDP 2022 growth forecast for China to 5%, form 5.4% in the October projections and far lower than the 8.1% growth of 2021. [4]
Stock of Twitter (TWTR.us) skyrocketed around 27% yesterday, after an SEC filing revealed that Tesla CEO Elon musk has taken a 9.2% stake in the company [5]. The disclosure comes just a few days after Mr Musk had criticized Twitter for "failing to adhere to free speech principles". [6]
German online delivery firm Delivery Hero, announced on Monday a 1.4-billion-euro debt financing syndication and now expects positive group adjusted EBITDA in 2023. DHER.de climbed around 10% yesterday after the news.
Main Asia-Pacific stock markets took their cues from the US tech rally and were upbeat, with mainland China still out on holiday, whereas European futures appear to be cautious.
On the FX space, the Australian Dollar is the overachiever due the RBA's hawkish tilt, while the US Dollar retreats.
Instruments Snapshot
EUR/USD consolidates above 1.0950 following its poor start to the week.
GBP/USD remains upbeat, eyeing 1.3150.
USD/JPY is on the back foot, testing 122.50.
USD/CAD is soft below 1.2500.
AUD/USD rallies around 1% to new 2022 highs, past 0.7600.
NZD/USD stays on the offensive, pushing towards 0.7000.
GER30 is cautious above 14,500.
US30 steadies around 34,900, after Monday's advance.
USOIL remains upbeat and tries to surpass 105.00.
XAU/USD is subdued around 1,930.
Economic Calendar Picks (GMT)
The docket remains somewhat light, with PMIs from Europe and USA expected, while markets also await a series of Fed speakers.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 05 Apr 2022 https://www.rba.gov.au/media-releases/2022/mr-22-11.html | |
| Retrieved 05 Apr 2022 https://www.deutschland.de/en/news/german-government-in-favour-of-tougher-sanctions-against-russia | |
| Retrieved 05 Apr 2022 https://openknowledge.worldbank.org/bitstream/handle/10986/37097/9781464818585.pdf | |
| Retrieved 05 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/f66f56c1-eb52-43f8-a7ff-992dc80a7396.pdf | |
| Retrieved 05 Apr 2022 https://twitter.com/elonmusk/status/1507777261654605828 |
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