What you need to know on Wednesday, April 14:
Markets oscillated between risk aversion and risk appetite. Sentiment was bitter ahead of the Wall Street opening, following news that the US FDA stopped the application of Johnson & Johnson’s coronavirus vaccine due to at least six cases of serious blood clots related to the vaccine. Stocks tumbled, providing temporary support for the dollar.
Financial markets reversed course following upbeat US inflation figures The March US Consumer Price Index jumped to 2.6% YoY, while the baseline reading reached 1.6%, stimulating the appetite for risk. Wall Street cut intraday losses, which resulted in a fall in the dollar.
Yields on US Treasuries also came under pressure, with the yield on the 10-year note down 1.62%.
In Europe, the German ZEW survey showed that economic sentiment contracted in April, but the shared currency reached a new 3-week high against the dollar.
In the UK, the February goods trade balance registered a deficit of £ -16,442 million, worse than expected, while the monthly gross domestic product registered 0.4% in February, better than the previous -2.2% but worse than 0.6% expected. Industrial Production in the country fell 3.5% annually, better than the -4.4% expected, while Manufacturing Production decreased 4.2% annually vs. -5.1% anticipated. The pound managed to register a modest intraday advance.
Bank of England chief economist Andy Haldane announced that he would step down and leave the Monetary Policy Committee after the June meeting to become the executive director of the Royal Society for Arts, Manufactures and Commerce.
The Organization of the Petroleum Exporting Countries raised its forecast for world oil demand growth in 2021 to 5.95 million barrels per day from the previous 5.89 million. Crude oil prices were slightly higher, with the WTI ending the day at $ 60.00 a barrel.
Gold regained lost ground, with XAU / USD ending the day at $ 1,745 a troy ounce, its highest level of the week.