The Bank of Japan’s Assistant Governor, Tokiko Shimizu, expressed concern about Japan’s economy due to global economic slowdown and financial market stress. She warned that the rapid interest rate hikes by the U.S. and European central banks could eventually harm global growth. While some Japanese firms are raising prices and wages, Shimizu believes that broader wage hikes are necessary for Japan to achieve the BOJ’s 2% inflation target in a stable and sustainable manner. The IMF has also lowered its 2023 global growth outlook and warned of the potential for severe financial system turmoil.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
No economic news from last night:
Some economic news from today:
Industrial Production (MoM) (Feb) increased from -5.3% to 4.6%
M3 Money Supply increased from 9.0% to 10.0%
Goldman Sachs has revised its expectations for the European Central Bank (ECB), citing recent data, comments from board members, and fewer concerns over the banking sector. The investment bank previously lowered its expectations for the ECB’s policy rate to 3.5%, but now believes the terminal rate will be 3.75%. Goldman Sachs also believes that inflation data in the euro zone remains strong, which strengthens the argument for further rate hikes. Preliminary data shows that headline inflation in the euro zone dropped to 6.9% in March from 8.5% in February.
The major Europe stock markets had a mixed day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
CPI (MoM) (Mar) decreased from 1.1% to 0.8%
CPI (YoY) (Mar) decreased from 10.4% to 10.1%
PPI Input (MoM) (Mar) increased from 0.0% to 0.2%
Core CPI (YoY) (Mar) increased from 5.6% to 5.7%
CPI (YoY) (Mar) decreased from 8.5% to 6.9%
Mortgage demand declined in the US significantly last week after mortgage rates increased by 0.13%. The Mortgage Bankers Association’s reported that demand fell 10% for the week and 36% YoY when rates were at the 5.2% level. The average 30-year fixed-rate mortgage now sits at 6.43%. Refinances also decreased by 6% for the week and were 56% lower YoY.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a negative day today:
The above data was collected around 12:14 EST on Wednesday
The above data was collected around 12:19 EST Wednesday.
Japan 0.481% (+0.5bp), US 2’s 4.27% (+0.068%), US 10’s 3.6291% (+5.71bps); US 30’s 3.82% (+0.027%), Bunds 2.516% (+4.6bp), France 3.017% (+3.9bp), Italy 4.359% (+5.8bp), Turkey 11.87% (-9bp), Greece 4.335% (+0.7bp), Portugal 3.383% (+6.4bp); Spain 3.544% (+4.7bp) and UK Gilts 3.855% (+10.6bp).