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It’s been three consecutive months that US inflation data has come in higher than expected and, with that, predictions around interest rate cuts have been pushed back from July to November.
Inflation rose from 3.2 per cent in February to 3.5 per cent in March triggering US markets to drop between 0.8 and 1.1 per cent (Nasdaq 0.8, S&P500 1% and Dow Jones 1.1%), while 10-year Treasury yields ticked up.
And the ASX200 is expected to follow the US lead, Futures suggesting a drop of nearly 0.8 per cent when the market opens shortly.
The Australian Bureau of Statistics will be releasing Monthly Business Turnover data for February this morning, as well as Building Approvals numbers.
In stocks to watch: Berkeley Energia (ASX:BKY) is taking the Kingdom of Spain to arbitration in its bid for permitting solutions for its Salamanca uranium project; Krakatoa Resources (ASX:KTA) has results of up to 1.24 grams per tonne of gold and 10.45 grams per tonne of copper from rock chip samples at its Turon project in New South Wales, and:
Drug developer PYC Therapeutics (ASX:PYC) is raising $74.6 million, including $13.5 million through a retail entitlement and is looking to add another $21.2 million in a shortfall offer as it progresses trials for eye and kidney treatments.
The Aussie dollar lost ground, back down to US65.1 cents.
Iron ore has recovered well over 3% to be at US$109; brent crude oil has continued to climb, sitting at US$90.60 a barrel, but gold has dropped 0.8% to US$2334 an ounce, and natural gas is also lower at US$1.88 per million British thermal units.
