S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
MUFG’s Michael Wan describes how a stronger US Dollar environment emerged as United States (US) April Consumer Price Index (CPI) surprised to the upside and US yields climbed. He notes that bonds sold off sharply, with the US 10-year yield near a one-year high and markets starting to price a potential Federal Reserve (Fed) rate hike by mid-2027, reinforcing support for the US Dollar (USD).
Hot CPI drives yields and Dollar
“Markets were dominated by a hotter-than-expected US April CPI print together with Iran and oil price developments, and if anything it seemed that price action were already moving ahead of key developments.”
“In particular, US headline inflation rose to 3.8% year-on-year, a three-year high driven by a 17.9% surge in energy costs — as the US-Iran ceasefire remained uncertain.”
“Bonds sold off sharply, with the US 10-year yield rising to a near one-year high of 4.46% and the 30-year back above 5%, while rates markets began pricing in a Fed hike by mid-2027.”
“Looking ahead today, the Trump-Xi summit in Beijing is the dominant geopolitical focus. On the data front, US April PPI is due, a key read following yesterday’s CPI surprise, alongside a $25 billion 30-year Treasury auction that will test duration appetite.”
