Morning Report

Morning Report PDF (PDF 270KB)

Key themes:

• Investors closely monitored the latest US CPI data, which came in on the soft side, with core prices rising by 0.2%mth. The data supported US Treasuries, but the move was limited, with most of the curve shifting only 1bp lower.
• President Trump voiced support for Iranian protesters, encouraging them to continue their demonstrations. Additionally, a new 25% US import tariff was announced on goods originating from countries that trade with Iran.
• In Japan, news agencies reported that Prime Minister Sanae Takaichi intends to call a snap election, aiming to consolidate public backing for the Liberal Democratic Party (LDP) and her pro-stimulus economic policies.
• Oil prices jumped higher, the DXY index appreciated, while the AUD fell 0.4% to below the 0.67 level, as the Westpac-Melbourne Institute Consumer Sentiment Index showed a deterioration at the start of the year.