Equities Lower After Iranian Drone Strike

Markets reacted to a drone strike in Kuwait and mixed economic data, while Fed commentary shifted more hawkishly regarding inflation risks. Global PMIs showed minor revisions, and Australian GDP data revealed a slight miss in Q1.

Key Takeaways

• 1.Geopolitical tensions in the Middle East, specifically an Iranian drone strike on Kuwait's airport, caused a weaker tone in US equities and higher oil prices, though the US maintains the truce is ongoing.
• 2.Federal Reserve officials (Logan) and internal AI analysis of the Beige Book signal rising risks that further rate hikes may be necessary to curb inflation, despite a resilient growth outlook.
• 3.China's property market may be approaching a durable bottom after a correction that has matched typical housing downturns in depth and duration.

Table of Contents

• AMERICAS
• EUROPE
• ASIA
• WEEK AHEAD DIARY
• AUSTRALIA
• NEW ZEALAND
• Analyst Certification
• Important Disclosures