As the world waits on the pending inflation data from the U.S., the majority of Asia-Pacific stock markets experienced declines, reacting to the unexpectedly robust inflation figures from China for the month of April. The consumer price index in China saw a year-over-year increase of 0.3%, surpassing the 0.2% increment projected by Reuters. Conversely, the producer price index witnessed a year-over-year decrease of 2.5%, which exceeded the forecasted decline of 2.3%.

European markets displayed a varied performance. Investors are attentively monitoring the forthcoming inflation data from the U.S. As of 11:15 a.m. London time, the pan-European Stoxx 600 index had marginally dipped, registering a slight increase of 0.05%, with sectoral performance showing a diverse range. The automotive sector experienced a rise of 0.9%, in contrast to the construction and materials sector, which saw a decline of 0.8%.

Recovering from an overnight lows, futures see a modest uptick in stock futures as investors on Wall Street set their sights on the upcoming inflation figures. S&P 500 futures saw a slight increase of 0.1%, and Nasdaq 100 futures ascended by 0.2%. Futures for the Dow Jones Industrial Average advanced by 30 points, equivalent to 0.1%. This movement comes as the Dow, with its 30 stocks, is emerging from its eighth consecutive session of gains last Friday, marking its most successful week of the year.

Economic Calendar

Earnings Calendar

Notable reports for Monday before the bell include AS, HUYA, PSFE, TME, & MDRX. After the bell include AGYS, ALLO, AHR, KYTX, & STNE.

News & Technicals’

“Firstly, a transparent and believable strategy for civilian protection is essential, which is currently lacking. Additionally, there’s a need for a post-conflict plan for Gaza, which remains unseen,” stated U.S. Secretary of State Antony Blinken. These remarks are made amidst escalating tensions between Israel and its principal ally. The Biden administration is against an Israeli incursion into Rafah, which is presently providing refuge to over 1.2 million displaced Palestinians.

Elon Musk’s platform X received a judicial respite on Monday when an Australian federal court declined to prolong a provisional mandate aimed at obstructing the dissemination of footage depicting a stabbing incident at a Sydney church. The court rejected the eSafety Commissioner’s request to maintain an injunction that would mandate the removal of content on X related to the violent assault on a priest that occurred in April, as reported by local news outlets. This event has sparked a heated dispute involving Musk and the Australian authorities, including Prime Minister Anthony Albanese.

On Monday, U.K. Prime Minister Rishi Sunak is set to announce that the nation stands at a pivotal juncture. He aims to bolster the diminishing allegiance to his Conservative Party as the general election looms. During a forthcoming address in central London, Sunak will articulate that the forthcoming years will pose some of the sternest challenges in the annals of British history, and he will position himself as the most capable leader to steer through them. The fate of Sunak’s political career is uncertain after the Conservatives’ lackluster performance in the recent local elections and the subsequent defections of several Tory MPs to the Labour Party.

Approximately 1,500 homebuyers are expressing frustration over not having received their apartments they purchased nearly eight years prior, amidst ongoing difficulties within China’s real estate market. They were assured that their homes would be completed by 2019, yet the bulk of these properties remain incomplete, shared by five buyers under the condition of anonymity due to concerns of backlash. “It feels as though I’ve been deceived all along,” lamented a purchaser on Monday, with their sentiments conveyed in Mandarin and interpreted by CNBC.

Although the Dow had a good day on Wednesday all the indexes were lacking in momentum, as volume was noticeably weak.  Perhaps the huge number of earnings or the weekly jobs numbers can provide some inspiration to the bulls or bears today. Plan your risk carefully and continue to watch for substantial point moves.

Anything is possible with pending inflation data combined with corporate buyback numbers of more than 550 billion.  Expect uncertainty to rule today as we wait for the Tuesday PPI with choppy price action unless the buybacks energize markets seeking all-time highs. Plan carefully, it could be wild.

Trade Wisely,

Doug