Early Morning Call: Traders cautious after US earnings, First Republic Bank

APAC equity markets traded mostly lower on Wednesday, following a negative session in the US. In Australia, consumer price index rose 7%, in the first quarter, from 7.8% in the previous three months. For March alone, the CPI rose 6.3% on the year, down from 6.8% in February. Crucially, the RBA trimmed mean CPI, a measure of inflation favoured by the Australian central bank, rose 1.2% in the March quarter, after 1.7% the previous quarter, and lower than the 1.4% anticipated by economists. Futures now imply only a 9% chance of a quarter-point rise in the 3.6% cash rate. The RBA is due to decide on rates next Tuesday.

In Germany, GfK consumer confidence rose more than expected in May, to -25.7, after -29.3 in April. Economist expected a rise to -27.9.

Elsewhere on the equity markets, GSK is the first of a series of pharma group to report earnings this week. GSK published an adjusted operating profit of £2.09Bln, up 9%, helped by sales of its blockbuster shingles vaccine Shingrix. GSK confirmed its full-year guidance.

Standard Chartered posted a 25% increase in underlying pretax profit to $1.7Bln, beating analyst estimates. The bank benefited from rising interest rates and increased trading. This was the largest single-quarter profit since the start of 2014, as credit impairment remained low at just $26 million for the quarter, down from $198 million a year earlier. Standard Chartered said it planned to return in excess of $5Bln to shareholders by 2024.

Elsewhere in Europe, look out for Roche shares in Zurich. The pharmaceutical group unveiled a 7% drop in sales in the first quarter on falling demand for its COVID-19 therapies and diagnostics kits. Also watch out for Danone in France. the group posted better-then-expected sales for the first quarter and raised its 2023 sales growth outlook.