Price pressures persist

Today's news headlines:

‘UK inflation hits 7% as fuel prices surge’. The UK Consumer Price Index rose 7.0% year-over-year in March, driven by a 28.3% jump in gas prices as real incomes look set to contract at their fastest pace since the 1950s. This reading hasn’t yet taken into account the 54.0% rise in the energy price cap in the UK, which is expected to push inflation as high as 8.7% in the fourth quarter of 2022, according to the Office for Budget Responsibility. (Financial Times)

‘Shanghai lockdown stokes global supply chains anxiety’. Shanghai reported another 26,330 Coronavirus cases on Tuesday as the city remains under tough lockdown restrictions. Electrical component manufacturers in Kunshan are now beginning to close, with restrictions being extended to areas outside of Shanghai. The pursuit of a zero-Covid policy by President Xi Jinping is expected to push growth down to 5% this year as operational challenges create a drag on manufacturing. (Financial Times)


Today

Asian markets were mixed overnight as the Nikkei rose 1.9% while stocks in mainland China drifted lower and the US Core Consumer Price Index rose at its slowest pace since September. The US Dollar has extended its gains this morning, moving 0.15% higher as oil prices hover around the $100 level.

Events

New Zealand Official Cash Rate: 1.50% (est. 1.25%)
UK Consumer Price Index y/y (March): 7.0% (est. 6.7%)
UK Core CPI y/y (March): 5.7% (est. 5.3%)
Italian Industrial Production m/m: 9:00AM
US Producer Price Index and Core PPI m/m: 1:30PM
Bank of Canada Monetary Policy Report: 3:00PM
Bank of Canada Press Conference: 4:00PM

Interbank rates:

GBP/USD – 1.2979
GBP/EUR – 1.1993
EUR/USD – 1.0824
USD/CAD – 1.2642

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.