- Stocks and bonds fell on concerns about inflation and tightening monetary policy, while the euro was buoyed by Emmanuel Macron's victory in the first round of the French presidential election.
- An Asia-Pacific equity index fell to its lowest level since mid-March, owing to falls in China and Hong Kong, including a drop in tech stocks. Futures in the US and Europe also fell, indicating that global equities will face additional challenges after the Federal Reserve signalled sharp interest-rate hikes and balance-sheet reductions.
- In March, China's factory gate prices rose more than expected, highlighting the price pressures buffeting the global economy.
- The 10-year Treasury yield in the US has risen to around 2.72%, the highest since 2019. Real yields are approaching positive territory, which could be a detriment to risk assets. For the first time since 2015, Australia's 10-year bond yield has surpassed 3%. A dollar index rose.
- The euro rose as much as 0.7% against the US dollar before reversing its gains. That suggests some relief from the French election, but also continued caution, a backdrop that may eventually filter into European markets.
- Given her longstanding sympathies for Russia, investors have been concerned about the implications of a victory for Macron's nationalist rival Marine Le Pen in the midst of the war in Ukraine. The question now is whether Macon can keep his lead over Le Pen in the final round.
