Tokyo, Shanghai, Shenzen and Hong Kong opened the session higher. Waiting for Chinese consumer prices
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The Tokyo Stock Exchange opens the session slightly higher, with investors digesting the indications on US inflation, in line with expectations, and waiting for the similar data on consumer prices in China. At the beginning, the reference Nikkei list marks a slightly positive change of 0.14% to 29,161.65, with an increase of 39 points. On the foreign exchange market, the yen appreciates again against the dollar, trading just below a level of 134 and against the euro at 147.10.
Even the Chinese Stock Exchanges are on the rise: the Shanghai Composite index marks an early increase of +0.14%, to 3,323.66 points, while that of Shenzhen records a rise of 0.12%, to 2,031.77. Hong Kong stock market in positive territory, again in the wake of the drop in US inflation which has increased expectations on a pause by the Federal Reserve with regard to rate hikes: the Hang Seng index gains 0.41%, reaching at 19,842.98 points.
On the central bank front, the Bank of England is on its way to the 12th consecutive interest rate hike. Observers expect an increase of a quarter of a percentage point, to 4.5%. This would be the peak since 2008, although the tightening is likely to herald a slowdown in increases.
The agenda
Investors are focused on the BoE meeting, which is expected to raise UK rates to 4.50% (+25 basis points). In the afternoon focus on applications for unemployment benefits in the US and on producer prices.
The day
An ups and downs day, Wednesday 10 May, for the European stock exchanges which closed negatively. The Ftse Mib index dropped by 0.4 and the Dax by 0.4 percent. All the spotlights were on US inflation in April, which fell to 4.9%, the lowest level for two years. After a positive reaction from the European stock exchanges to the data, sales have returned to show a certain nervousness in the Old Continent. Wall Street, on the other hand, held. In Piazza Affari, the banks with Bpm and Mps among the worst down by more than 2% are for sale. On the other hand, recovery for Telecom grew by over 4%. The BTp bund spread is stable at around 190 basis points while the euro holds just below 1.10 against the dollar after the US figure.
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