Pre-Market Report – Monday 15 April: US Wobbles on Middle East and Rising Risks

Market Updates

US equities ended lower, near worst levels, after major US bank results failed to impress, and geopolitical tensions rose after news reports that Israel was bracing for an attack by Iran on government targets. The Dow tumbled 476 points (-1.24%), down 582 points at worst. The S&P 500 lost 1.46%, and the NASDAQ slipped 1.62%. The Dow and S&P 500 have fallen for a second consecutive week, down 2.37% and 1.55% and the NASDAQ fell 0.45%, now down three weeks straight. Banks earnings season kicked off, JPMorgan fell 6.14% after NII forecasts fell short of expectations, Wells Fargo edged lower 0.39% after posting profits fell 7% as NII dropped on weak borrowing demand, and Citi -1.7% reported a loss due to costs on employee severance and deposit insurance. US treasury yields rose, with the 10Y and 2Y both falling more than 5bps each as geopolitical tensions spurred safe-haven buying and Wall Street's “Fear gauge”, the VIX, spiked 16.1%, levels not seen since October.
ASX SPI Futures down 49 points Saturday Morning

• Base metals higher, Nickel +0.40%, Lead +1.31%, and Tin +0.58%.
• Aluminium +1.26 and Zinc +2.04% at 14 and 12-month highs on signs of economic recovery in China.
• Copper gained 1.09% on expectations of a demand upswing on the back of potential rate cuts in the coming months.
• Gold fell 1.24%, paring earlier gains after hitting a record high.
• Brent Crude flat and WTI up 0.78%.
• Currencies – AUD -1.12%, USD Index +0.68%, Euro -0.36%, and Bitcoin -4.23%.
• 10Y Bond Yields – US 4.520%, Australia 4.211%, and Germany 2.368%.

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