Rate Cut Expectations, Inflation Fears Drive Market Sentiment

Sentiment oscillated between rate cut expectations and inflation anxieties even as markets continued an anxious wait for the PCE-based inflation readings from U.S. and Fed Chair Jerome Powell's speech, both scheduled for Friday.

Data released earlier in the day showed the GfK Consumer Climate Indicator for Germany edging up to -27.4 in April as compared with -28.8 in the previous period and market expectations of -27.9. The durable goods orders reading in the U.S. in February is seen at 1.1 percent versus -6.1 percent in the previous month.

Wall Street Futures indicate minor gains. Major European benchmarks are trading higher amidst stocks in Germany touching an all-time high. Asian shares mostly gained.

The Dollar Index declined amidst the greenback's retreat. Bond yields eased across regions and tenors. Crude oil prices increased amidst supply concerns. Rate cut expectations triggered a strong rally in gold prices. Cryptocurrencies extended gains.

Here is a glimpse of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 39,416.50, up 0.26%
S&P 500 (US500) at 5,240.90, up 0.44%
Germany's DAX at 18,356.42, up 0.48%
U.K.'s FTSE 100 at 7,919.01, up 0.02%
France's CAC 40 at 8,163.60, up 0.15%
Euro Stoxx 50 at 5,061.05, up 0.33%
Japan's Nikkei 225 at 40,494.50, up 0.12%
Australia's S&P ASX 200 at 7,780.20, down 0.41%
China's Shanghai Composite at 3,031.48, up 0.17%
Hong Kong's Hang Seng at 16,618.32, up 0.88%

Currencies:

EUR/USD at 1.0859, up 0.21%
GBP/USD at 1.2663, up 0.23%
USD/JPY at 151.25, down 0.10%
AUD/USD at 0.6559, up 0.30%
USD/CAD at 1.3564, down 0.15%
Dollar Index at 104.05, down 0.40%

Ten-Year Govt Bond Yields:

U.S. at 4.230%, down 0.50%
Germany at 2.3440%, down 1.26%
France at 2.813%, down 1.37%
U.K. at 3.9740%, down 0.40%
Japan at 0.731%, down 1.08%

Commodities:

Brent Oil Futures (Jun) at $86.12, up 0.05%.
Crude Oil WTI Futures (May) at $82.06, up 0.13%.
Gold Futures (Apr) at $2,194.20, up 0.82%.

Cryptocurrencies:

Bitcoin at $70,907.10, up 5.60%
Ethereum at $3,647.10, up 5.31%
BNB at $595.32, up 1.63%
Solana at $195.26, up 2.07%
XRP at $0.6478, up 2.31%.

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