US markets close flat ahead of inflation data later this week

Markets finished the day essentially flat as investors remain focused on CPI due out later this week.

The Dow Jones closed down 0.03 per cent, the S&P 500 ticked down by 0.04 per cent and the Nasdaq just tipped into positive territory to close 0.03 per cent higher at the close.

Treasury yields rose as traders remain wary of a surprise CPI print on Wednesday. The 10-year Treasury note rose 4 basis points to 4.42 per cent

March CPI due on Wednesday is seen as a key piece of news that will determine whether and when the Fed will begin to lower rates. Economists surveyed by Bloomberg forecast Wednesday’s consumer price index will show some easing of inflation pressures. Yet the core gauge, which excludes food and energy costs, would still be up 3.7 per cent from a year earlier, above the Fed’s 2 per cent target.

In company news, Tesla shares gained 4.9 per cent after CEO Elon Musk said the company’s robotaxi will be unveiled in early August.

Oil prices fell as traders monitored Middle East negotiations. A Hamas official said no progress had been made on Gaza ceasefire talks in Cairo while the Israeli Prime Minister said a date was set for an invasion of Rafah, the enclave’s last refuge for displaced Palestinians.

The global supply of public equity is shrinking at its fastest pace in 25 years, with JPMorgan analysts attributing this decline to economic and geopolitical uncertainties. Despite favourable market conditions, companies are opting for extensive stock buybacks instead of issuing new shares, reflecting a persistent lack of executive confidence.

Turning to US sectors, Real Estate was the best performer overnight. Energy was the worst.

In crypto-related news, Bitcoin and other cryptocurrencies surged on Monday with Bitcoin nearing $72,000, garnering attention ahead of its upcoming halving event, where the issuance of new tokens is halved every four years, historically resulting in price increases. However, the dynamics leading into this halving differ significantly from previous ones, as Bitcoin was valued around $9,000 before the 2020 halving, compared to its recent record high of nearly $74,000.

Futures

The SPI futures are pointing to a 0.5 per cent gain.

Currency

One Australian dollar at 7.40am was buying 66.05 US cents.

Commodities

Gold added 0.24 per cent. Silver gained 1.11 per cent. Copper rose 0.94 per cent. Oil fell 0.55 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.41 per cent, Frankfurt gained 0.79 per cent, and Paris closed 0.72 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 0.91 per cent, Hong Kong’s Hang Seng added 0.05 per cent and China’s Shanghai Composite lost 0.72 per cent..

Yesterday, the Australian share market closed 0.20 per cent higher at 7,789.08.

Ex-dividends
Brickworks Limited (ASX:BKW) is paying 24 cents fully franked
Katana Capital (ASX:KAT) is paying 0.5 cents fully franked

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

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