7:00 AM EST – OPEC’s monthly report
8:30 AM EST – US exports and import price index
10:00 AM EST – FOMC member Kaplan speaks
10:30 AM EST – US crude oil inventories
2:00 PM EST – Fed’s budget balance
9:30 PM EST – China’s exports
9:30 PM EST – China’s imports
9:30 PM EST – China’s trade balance
After rising higher on Tuesday, China’s Shanghai Composite Index pulled back on April 12. The market sentiment is weak due to geopolitical concerns and softer inflation data.
Tensions between the US and Syria and President Trump’s tweets about North Korea decreased the risk appetite in the market. According to data released by the National Bureau of Statistics of China, China’s consumer price index fell 0.3% in March—the second consecutive monthly decline. Annual inflation rose 0.9%—a slight improvement from the previous reading, but lower than the market’s forecast of 1% growth.
On April 12, the Shanghai Composite Index fell 0.46% and ended the day at 3,273.83. The SPDR S&P China ETF (GXC) closed at 82.36—a fall of 0.47% on April 11.
After starting the week on a weaker note, Hong Kong’s Hang Seng Index regained strength and recovered losses on Wednesday. The Hang Seng market reversed the sentiment and regained strength after news of President Xi Jinping’s call to President Trump regarding North Korea. According to reports, President Xi urged President Trump to find a peaceful resolution regarding the nuclear crisis with North Korea. On April 12, the Hang Seng Index rose 0.93% and closed the day at 24,313.50. The iShares MSCI Hong Kong ETF (EWH) fell 0.53% to $22.5 on April 11.
Japan’s Nikkei index started the day lower and fell to the lowest levels in four months on Wednesday. The market sentiment is weak due to geopolitical events. The losses grew due to the stronger yen. The finance and machinery sectors led the market decline today. Nikkei fell 1.0% and closed the day at 18,552.61. The iShares MSCI Japan ETF (EWJ) closed at $51.21 on April 11—a gain of 0.51%. In the next part, we’ll see how European markets are performing on Wednesday.