UK CPI growth slows in March, but not as much as thought

The Federal Reserve

Jerome Powell dashed all hopes of meaningful rate cuts this year. According to the Federal Reserve (Fed) Chairman on Monday, recent data show a lack of further progress on inflation, so it is appropriate to give the policy further time to work. The reaction was instant. US two-year yields rose past 5% to their highest since November.

Japan's trade balance

Good news in Japan, with a turnaround in trade data. Japan's trade balance unexpectedly shifted to a surplus in March of ¥366.5 billion. It was the first trade surplus in three months. Shipments rose by 7.3% year-over-year (YoY), while imports decreased by 4.9%.

UK inflation

UK inflation is coming down, but not as fast as economists had been expecting. Headline March consumer price index (CPI) came in at 3.2%, down from 3.4% last time but higher than the 3.1% year-on-year expected. The core rate, without food and fuel, registered 4.2, down from 4.5 but not as low as the 4.1 forecast.

Rio Tinto

Elsewhere on the equity market, Rio Tinto has reported a 5% fall in its first-quarter iron ore shipments, citing weather disruptions at ports and reduced production from some of its mines in Western Australia. The world's largest producer of iron ore shipped 78 million metric tonnes of the metal from its Pilbara operations. Lower than forecasts of 79.6 million tons. Rio remains confident for the rest of the year. It expects increased demand from China following its recent stimulus measures.

LVMH

Is the wind turning for luxury labels? On Tuesday, after the French market closed, LVMH confirmed analysts' fears. Shoppers who once aspired to own luxury labels are now holding back. The owners of Louis Vuitton, Tiffany & Co., and Bulgari said that sales rose 3% on an organic basis to €20.69 billion, matching analyst expectations. Asia sales, excluding Japan, were down 6%. Asia is a real concern for luxury brands. Last month, Kering, the owner of Gucci, issued a surprise warning that first-quarter sales would slump 10%, with sharp declines in Asia.

Adidas

Adidas raised its 2024 profit outlook. After what it called a better-than-expected first quarter, the German sportswear maker now expects a full-year operating profit of about €700 million, up from earlier forecasts of €500 million.

ASML

ASML reported first-quarter earnings of €1.22 billion. Analysts had forecast net income at €1.08 billion. Revenue, though, misses forecast, and ASML unveiled a worse-than-expected inflow of new bookings of 3.6 billion euros.

United Airlines

United Airlines shares rose 6.4% in extended trading after topping analysts' earnings forecast for the current quarter. The airline reported a narrower-than-expected loss in the first quarter, based on robust demand for travel. Loss per share came in at 15 cents per share, against expectations for a 57-cent loss. Revenue also beat forecast at $12.54 billion. United Airlines is a prominent customer of Boeing and had to adjust its fleet plans at a time when travel demand is projected to hit record levels. During the first quarter, United Airlines received only seven planes, compared to the 23 aircraft it received during the same quarter. Yet, United Airlines expects an adjusted profit in the range of $3.75 to $4.25 a share in the June quarter, compared with analysts' expectations of a profit of $3.76 a share.

Abbott Laboratories

Abbott Laboratories is due to report before the market opens. The street anticipates earnings of 96 cents per share, which would be a 7.8% decline from the same quarter a year ago. Revenue is forecast to rise by 1.8% to $9.89 billion. It has been a difficult last three months for Abbott Laboratories. In mid-March, the stock was hit after Reckitt Benckiser was ordered to pay $60 million to the mother of a premature baby who died of an intestinal disease after being fed the company's Enfamil baby formula. Why does it concern Abbott Labs? Hundreds of lawsuits are yet to come, claiming that various baby formulas, including Abbott Labs' Similac, cause the disease.

Alcoa

Alcoa is scheduled to report on Wednesday after the US market closes. Analysts see a loss of 62 cents per share on revenue of $2.56 billion, which would be a decline for both lines. Yet, the Alcoa share price has risen 30% over the past six months, or 22% during the last 30 days alone, reflecting the current rally in aluminium prices.