ASX futures were hinting higher as of 7:00am on Tuesday, having gained 6 points or 0.1%.

North America

US stocks ended mixed on the first day of the second quarter as investors interpreted weaker-than-expected manufacturing data and a spike in oil prices. The S&P 500 advanced 0.4% and the Dow Jones added 1%, while the Nasdaq Composite was off by 0.3%.

US stocks are coming off a tumultuous first quarter in which the major indices proved fairly resilient in the face of a banking crisis that caught the financial world by surprise in March. All three major stock indices finished the first three months of the year with gains.

A surprise announcement over the weekend of oil production cuts led to a jump in crude prices, coloring market action Monday. OPEC, led by Saudi Arabia, said Sunday they would cut more than a million barrels of output a day starting next month.

The rise in oil prices boosted shares of energy companies. The S&P 500 energy sector added 4.9%, the best-performing segment of the S&P 500. Exxon Mobil jumped 5.9% and Chevron climbed 4.2%.

Higher oil prices reignited concerns on Wall Street about inflation and the Federal Reserve's interest rate increases designed to tamp down elevated costs. "The fight on inflation is not over... that won't be a good scenario for central banks," said Luc Filip of SYZ Private Banking.

Meanwhile, new data showed a slowdown in manufacturing activity. The ISM PMI dropped to 46.3% in March, marking its lowest since May 2020 and indicating contraction in the sector.

Auto manufacturers declined Monday amid rising car payments and increasing inventory levels. Tesla fell 6.1%, Rivian dropped 1.6%, and General Motors lost 1.1%.

Commodities and Currencies

Brent crude oil shot up 6.3% to $US84.92 a barrel while gold edged up 0.7% to US$1,983.48.

Australian government bonds edged higher: 2 Year yield at 2.98% and 10 Year at 3.32%. US Treasuries were lower: 2 Year at 3.98% and 10 Year at 3.43%.

The Australian dollar edged up to 67.79 US cents. The Wall Street Journal Dollar Index dipped to 95.80.

Asia

Chinese stocks rose on upbeat official PMI data. Biwin Storage jumped 18% and China Greatwall Technology gained 10%. The Shanghai Composite rose 0.7% to 3296.40, Shenzhen Composite added 1.1%, and ChiNext advanced 1.7%.

Hong Kong’s Hang Seng Index ended flat at 20409.18. China’s Caixin manufacturing PMI fell to 50.0. Meituan and Baidu dropped, while Tencent gained. SMIC surged 7.5%.

Japan’s Nikkei rose 0.5% to 28188.15, led by tech and oil shares. Inpex jumped 5.5% and Eneos gained 3.2%.

India’s Sensex closed 0.2% higher at 59106.44 on easing Fed expectations. Lenders and auto stocks posted gains, with Maruti Suzuki up 2.5% and IndusInd Bank up 1.0%.

Europe

European stocks traded mixed. Stoxx Europe 600 dipped 0.1%, DAX lost 0.3%, and CAC 40 rose 0.3%. Energy stocks rallied while airlines fell. Banks gained on rate hike expectations.

FTSE 100 advanced 0.5% on energy sector strength. Shell and BP gained over 4%. Barclays, Standard Chartered, and Lloyds led bank gains, while travel stocks slipped.