Global markets: US stocks dip after Fed minutes raise concerns on banking crisis, inflation
US stocks dropped on Wednesday after minutes from the Federal Reserve policy meet in March showed that central bank officials are concerned about the banking crisis and the high inflation.
The S&P 500 declined 0.40% at 4,092.28. The Dow Jones Industrial Average slipped 0.10% at 33,652.63. The Nasdaq Composite lost 0.84% to end at 11,931.13.
Earlier in the day, the US labor department released the inflation data. The consumer price index (CPI) rose 0.1% in March after increasing 0.4% in February. On an annual basis the consumer prices rose by 5% in March, down from 6% in February.
The latest inflation data suggest that the Fed may pause rate hike next month.
US bond yields declined after the inflation data. The yield on 2-year treasury slumped as much as 15 basis points before paring the loss. The US dollar declined against other major currencies.
Canada
Canada stocks gained on Wednesday as the Bank of Canada kept interest rates unchanged. The Toronto Stock Exchange’s S&P/TSX composite index rose 0.2% at 20,454.32.
European equities
European equities rose on Wednesday, with the pan-European STOXX 600 index gaining 0.1%.
Europe’s blue-chip STOXX 50 index hit its highest since 2001 on strong buying demand of mega-cap stocks, but the index ended marginally higher.
Britain’s FTSE 100 gained 0.5% at 7,824.84. France’s CAC 40 added 0.1% at 7,396.94. Germany’s DAX rose 0.3% at 15,703.60.
Asian shares
In Asia, MSCI’s broadest index of Asia-Pacific shares, outside Japan, fell 0.16% in choppy trade.
Hong Kong’s Hang Seng index fell 0.9% at 20,309.86. Shanghai Composite index gained 0.4% at 3,327.18. South Korean benchmark Kospi rose slightly 0.11% at 2,550.64.
In Japan, Nikkei 225 rose 0.6% at 28,082.70.
In Australia, the S&P/ASX 200 index rose 0.5% at 7,343.90. New Zealand’s benchmark S&P/NZX 50 index surged 0.4% at 11,917.50.
Crude oil
Oil prices advanced 2% on Wednesday. Brent crude for June delivery gained $1.72 at $87.33 a barrel. US crude oil benchmark for May delivery rose $1.73 at $83.26 a barrel.
Bullion
Gold prices surged on Wednesday. US gold futures settled 0.3% higher at $2,024.90 an ounce. Silver for May delivery rose 27 cents to $25.46 an ounce.
Bitcoin fell 1.01% at $29,941.00.
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