Risk appetite recovered globally as oil prices plunged on US-Iran deal reports and UK inflation data softened. However, FOMC minutes confirmed a hawkish stance due to persistent inflation concerns.
Key Takeaways
- 1.Fed meeting minutes revealed a hawkish tilt, with participants concerned that inflation is taking longer than expected to reach the 2% target.
- 2.Global oil prices dropped significantly (-5.7%) following reports of progress toward a US-Iran draft agreement, boosting risk appetite in equities.
- 3.UK inflation cooled faster than expected in April, with headline CPI falling to 2.8% and core CPI to 2.5%, suggesting a BoE pause in June.
Table of Contents
- Highlights
- Data and events today
- Financial markets
- Global markets overview
- Key data and events
- Key themes and views
- Important Notice
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Authors
David CroyBrian Martin
Securities
NZD/USDUS 10-Year TreasuryWTI Oil futuresS&P 500
Themes
Central Bank Hawkishness vs. Market Easing HopesGeopolitical De-escalationDisinflationary Pressures in Europe and UK
Regions
Asia PacificNorth AmericaEuropeNew ZealandUnited StatesUnited Kingdom