US markets were stronger, with the Dow Jones up +2.3% and S&P500 up +3.6%.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 2.33% and 10-Yr yield lower at 2.34%, after Fed raised interest rates by +25bps to 0.25-0.5%, the first increase since 2018, and signalled hikes at all six remaining meetings this year and to begin allowing its $8.9 trillion balance sheet to shrink at a coming meeting. Fed Chair Jerome Powell struck a more positive tone on the prospects for economic growth, announcing the economy is very strong and well positioned to handle tighter monetary policy and that the probability of a recession is not particularly elevated and he is prepared to raise interest rates by +50bps at its next meeting if needed.
EUROPEAN MARKETS
European markets were mostly higher, with the Stoxx Europe 600 Index up +0.6%, UK FTSE up 0.8% and German DAX down -0.3%.
ASIAN MARKETS
Asian markets were mostly higher, with the Nikkei 225 up +4.9% and KOSPI up +2.2%. The Shanghai Composite declined -6.1%, as sentiment was hit after China set its lowest growth target in more than three decades, expecting 2022 GDP to grow +5.5% (vs IMF’s projection of +4.8% expansion) and as a lockdown in Shanghai to combat a virus flareup raised worries over disruptions to business operations and the toll on economic growth.
COMMODITIES
Over the month, WTI oil price gained +7.3%, amid escalating tensions between U.S. and Russia, and IEA predicting output from the key OPEC+ members will decline by about a quarter in April, as OPEC+ affirmed its existing plan of gradual increases and increase supply in May by 432,000 barrels a day. The U.S. announced release of roughly 1m barrels of oil a day from its reserves for six months, a historic drawdown, and members of IEA agreeing to make another round of releases from their emergency fuel reserves. Iron ore prices increased +12.9%, whilst spot gold gained +1.5%.
The ASX200 gained +6.4%, after Australian government announced a series of spending measure, from fuel-tax cuts to cash handouts, designed to cushion the impact of rising living costs, and forecast the underlying cash deficit narrowing to A$78bn in 2023 (3.4% of GDP) from A$79.8bn currently and A$43.1bn (1.6% of GDP) by 2026, and estimated real GDP to expand +4.25% in 2021-22 and grow +3.5% in 2022-23 before slowing to +2.5% in each of the following three years.
