ASX Futures

ASX futures were flat as of 6:00am Thursday.

US Stocks

US stocks were muted Wednesday as investors continued to monitor corporate earnings, which have broadly been beating analysts' expectations. The Dow Jones Industrial Average shed 0.2% while the S&P 500 and the Nasdaq Composite were little changed. Investors are watching earnings to determine company health following the collapse of Silicon Valley Bank, interest rate increases by the Federal Reserve and elevated inflation. Companies including Abbott Labs, Baker Hughes, Morgan Stanley, Citizens Financial, Nasdaq and Travelers reported results early Wednesday, alongside regional banks such as Citizens Financial and US Bancorp. IBM and Tesla are slated to release results after markets close. Of the 9% of S&P 500 companies that have thus far reported earnings, 84% have reported better-than-expected earnings per share, according to FactSet.

Commodity Markets

In commodity markets, Brent crude oil slipped 2.0% to US$83.11 a barrel while gold dropped 0.6% to US$1,994.49. Australian government bonds moved higher, with the 2 Year yield climbing to 3.19% and the 10 Year yield increasing to 3.51%. US Treasury notes also gained, with the 2 Year yield reaching 4.26% and the 10 Year yield moving up to 3.60%. The Australian dollar dipped to 67.14 US cents after previously closing at 67.26. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged up to 96.05.

Asia

Chinese shares ended lower amid concerns over an uneven economic recovery, following the release of stronger-than-expected data. China reported higher-than-expected Q1 GDP growth on a jump in retail sales in March, but industrial production undershot forecasts. Property and telecom stocks underperformed, with China Unicom dropping 5.6% after reporting Q1 earnings. China Vanke was down 2.6% and Gemdale Corp. was 4.3% lower. Shares of consumption companies fell after a previous rally, with Yonghui Superstores declining 0.9% and Midea Group dropping 0.7%. The Shanghai Composite Index was down 0.7% at 3370.13. Both the Shenzhen Composite Index and the ChiNext Price Index dropped 0.6%.

Hong Kong shares closed 1.4% lower at 20367.76 amid concerns over China's uneven economic recovery and Hong Kong currency weakness. The city's monetary authority bought around HKD$6.9 billion to shore up the currency, which could pressure banks to raise interest rates. Tech companies led losses, with the Hang Seng Tech Index dropping 2.4%, JD.com falling 2.9% and Alibaba Group 2.7% lower. Auto makers also declined after Tesla announced price cuts in the US for some models. Chinese rival Xpeng declined 6.1% and Li Auto fell 4.2% amid fears that Tesla could apply the price cuts to China.

Japan’s Nikkei Stock Average closed 0.2% lower at 28606.76, dragged by declines in electronics shares, as caution continued over the economic and earnings outlook. Olympus Corp. dropped 2.6% and Yaskawa Electric lost 1.6%. Broader market index Topix ended flat at 2040.38.

Indian shares lost ground for the third straight day, dragged by tech stocks, amid caution over corporate earnings and the economic outlook. Infosys finished 2.3% lower, Wipro dropped 1.8% and HCL Technologies declined 2.4%. Financials advanced, with Axis Bank rising 1.1% and Bajaj Finance adding 0.6%. The benchmark Sensex index fell 0.3% to 59567.80.

Europe

European stocks declined Wednesday following losses in Asian markets. The pan-European Stoxx Europe 600 dropped 0.1%, the French CAC 40 added 0.2% and the German DAX gained 0.1%. Steel, property and automotive stocks were among the continent’s biggest losers. "Stock markets struggled in Asia overnight after a mixed earnings report from Netflix," IG analysts wrote, adding that stronger-than-expected UK inflation data will put renewed pressure on the Bank of England to increase interest rates again. "Tesla earnings are published tonight, as well as weekly crude inventory data this afternoon."

In London, the FTSE 100 closed down 0.1% as inflation in the UK fell less than expected in March, fuelling speculation around a rise in interest rates, Capital Economics’ Ruth Gregory said in a note. The Bank of England will likely raise interest rates to 4.5% in May, she said, but added that this level will likely be maintained throughout 2023, with inflation expected to decline significantly over the coming months as energy prices fall. British American Tobacco was the biggest riser, up 3.4%, followed by Smith & Nephew, up 2.2% and Hiscox, up 1.8%. Ocado was the session's biggest faller, down 2.2%.

North America

US stocks were muted Wednesday as investors continued to monitor corporate earnings, which have broadly been beating analysts' expectations. The Dow Jones Industrial Average shed 0.2% while the S&P 500 and the Nasdaq Composite were little changed. Investors are watching earnings to determine company health following the collapse of Silicon Valley Bank, interest rate increases by the Federal Reserve and elevated inflation. Companies including Abbott Labs, Baker Hughes, Morgan Stanley, Citizens Financial, Nasdaq and Travelers reported results early Wednesday, alongside regional banks such as Citizens Financial and US Bancorp. IBM and Tesla are slated to release results after markets close. Of the 9% of S&P 500 companies that have thus far reported earnings, 84% have reported better-than-expected earnings per share, according to FactSet.

"Today the market is taking a bit of a pause, but so far 2023 has been much more of an up market than we would have expected," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. The S&P 500 has risen 8.6% so far this year.

Tesla shares closed 2.0% lower ahead of the electric vehicle maker's quarterly earnings. This year, the company lowered prices for models in the US by 14% to 25%. Investors will be looking for information on how those cuts are affecting how much money the company makes on each car it sells.

Western Alliance Bancorp led a rally in regional bank stocks after the lender said it added $2 billion in deposits from March 31 to April 14. Its shares jumped 24.1%, while Metropolitan Bank shares added 17.8% after the company reported higher quarterly revenue and profit.