US equities finished with gains and near the highs of the day yesterday, as investors sifted through the first look at February’s inflation picture.  The Consumer Price Index rose in line with estimates month-over-month, while the core rate increased a little more than expected.  On a year-over-year basis, both the headline and core rates declined but remained elevated.  The banking sector remained in the headlines, with many banks climbing higher following sharp losses over the past few trading sessions.  Treasury yields rebounded, especially at the shorter end of the curve, and the US dollar was nearly unchanged.  The Dow Jones Industrial Average increased 1.1%, the S&P 500 Index was up 1.7%, and the Nasdaq Composite rallied 2.1%.  European equity markets also rebounded from a two-day selloff, with the Euro Stoxx 50 Index rising 2.0%. 

Summary as at 15.03.2023 

  • Most Asian equity markets rose on Wednesday, helped by a recovery in bank shares amid easing fears over a potential crisis in the US and growing bets that the Federal Reserve will adopt a less hawkish stance.  Technology-heavy bourses gained the most, with Hong Kong’s Hang Seng index and South Korea’s Kospi up more than 1% each.  Mainland Chinese indices were also up as mixed economic data showed that a recovery in the country was gaining steam, albeit at a staggered pace. 
  • Oil prices rose this morning as a drop to three-month lows attracted some bargain buying, while optimism over Chinese demand, following strong economic data and a hike in OPEC’s outlook for the country, also aided sentiment.  World oil demand is expected to rise by 2.32 million barrels per day in 2023, or 2.3%, OPEC said in a monthly report. 
  • European and US equity markets are seen heading for a muted start after yesterday’s rebound. 
  • Chinese industrial production rose slightly less than expected in February, while retail sales and fixed asset investment bounced back from pandemic-era lows.  Industrial production rose 2.4% in February from the same period last year, lower than expectations for a rise of 2.6%, but higher than January’s reading of 1.3%. 
  • The annual inflation rate in the US reached 6% in February of 2023, slowing for an eighth straight month and marking the lowest level since September of 2021. The reading came in line with market forecasts and compares to 6.4% in January.  Compared to the previous month, the CPI rose 0.4%, following a prior 0.5% gain and matching forecasts. The core rate, however, edged higher to 0.5% from 0.4% in January, compared to forecasts of 0.4%. 
  • United Airlines Holdings Inc. traded lower yesterday after the airline forecasted an adjusted Q1 loss due to expenses related to a possible new collective bargaining agreement with its pilots. UAL also cited comparatively weaker demand growth and higher fuel costs.  
  • Bank of America mopped up more than $15 billion in new deposits in a matter of days, emerging as one of the big winners after the collapse of three smaller banks dented confidence in the safety of regional lenders.  The inflows offer a first glimpse into the deluge of deposits that made its way to the country’s largest banks as customers fearful of a spreading crisis sought refuge in the firms seen as too big to fail.  Other banks like JPMorgan, Citigroup, and Well Fargo also raked in billion in new deposits, though the figures have not been disclosed yet. 
  • Shares of Meta Platforms Inc. rose more than 7% on Tuesday after CEO Mark Zuckerberg said that a second round of job cuts will begin Wednesday, with around 10,000 employees expected to be let go. This new round of layoffs follows a previous round of cuts in November that affected over 11,000 workers, which accounted for approximately 13% of Meta’s staff. 
  • Apple is reportedly expanding its cost-cutting efforts including reducing the frequency of bonuses for some corporate employees.  The teams that used to get bonuses in April and October, including operations and corporate retail, will only get bonuses or promotions in October in a new once-a-year schedule.  Apple is also said to be curbing travel, limiting hiring and not filling positions when employees leave.