ASX 200 to fall for a fourth straight session, S&P 500 extends selloff as yields spike

The S&P 500 has given back six weeks worth of gains in the past eight sessions as Middle East tensions continue to soar, US bond yields continue to push towards uncomfortable high levels, gold and copper prices rally above recent highs, Tesla plans to cut more than 10% of its global workforce and ASX quarterly reporting season is set to heat up tomorrow.

Let's dive in.

S&P 500 DAILY CHART

S&P 500 undercuts the 50-day moving average for the first time since Nov-23 (Source: TradingView)

S&P 500 SESSION CHART

S&P 500 gives back early gains to finish at worst levels (Source: TradingView)

MARKETS

Our tables have experienced some issues this morning. They will be back tomorrow.

• S&P 500 -1.20%, Dow -0.65%, Nasdaq -1.79%, Russell 2000 -1.37%

• S&P 500 finished lower and near worst levels after rallying 0.88% in early trade

• S&P 500 is trading below its 50-day moving average for the first time since Nov-23

• Bond yields continued to tick higher, led by the long end of the curve – The US 10-year yield is now up 25 bps in the last four sessions

• US Dollar Index hits five month high, nears strongest level against the Yen since 1990

• Base and precious metals extended gains, led by gold, copper and silver

• Early optimism and bounce reversed after reports Israel war cabinet was preparing to retaliate “clearly and forcefully,” driving more geopolitical volatility 

• Goldman Sachs Sentiment Indicator records its biggest weekly decline and fell to the lowest level in a year (The Market Ear)

• JPMorgan strategists say don't count on upbeat Q1 earnings season (Bloomberg)

• Dollar rally supercharged by doubts over how aggressively Fed can cut rates tr (Reuters)

• Commodities rally complicating central banks' inflation tackling measures, jeopardising near-term rate cut hopes (Bloomberg)

• Base metals rally on US and UK sanctions banning deliveries of Russian supplies which account for 4-6% of global supply (Bloomberg)

• Cocoa reaches another record as West African supply disruption persists (Bloomberg)

ASX TODAY

• ASX 200 set to open lower for a fourth straight session and potentially test the 50-day moving average for the first time since late Nov-23

• Soaring bond yields and risk-off tone to overnight markets will likely weigh on tech, growth and real estate stocks

• ASX quarterly reporting season ramps up tomorrow with BHP, Bank of Queensland and Deterra Royalties due to report March quarter numbers

• Allianz Australia running the ruler over ClearView Wealth (AFR)

• Auckland International reports preliminary March traffic up 12% year-on-year (AIZ)

• Star Entertainment inquiry reveals 'bulk processing' of so-called enhanced customer due diligence checks (AFR)

• Suncorp to launch $300m capital notes 5 offering (SUN)

INTERNATIONAL STOCKS

• Apple iPhone shipments down 10% as Samsung regains market share lead (IDC, Bloomberg)

• Tesla laying off more than 10% of employees (Electreck)

CENTRAL BANKS

• ECB's Simkus says central bank could cut rates three times this year (Bloomberg)

• UBS strategists flag raise odds of Fed hiking and see 6.5% fed funds rate if inflation holds at 2.5% (Bloomberg)

GEOPOLITICS

• Israel says it has no choice but to retaliate against Iran (Axios)

• Israel said Hamas rejected latest ceasefire proposal as tensions with Iran escalate (Bloomberg)

• Israel's war cabinet meet for second day to determine response options for Iran attack (Washington Post)

• US officials and allies now focusing efforts to minimise Israeli retaliation (Bloomberg)

• Japan PM Kishida may call a general election as early as June (Kyodo)

ECONOMY

• US retail sales up more than expected in March amid a surge in eCommerce (Reuters)

• China's Q1 GDP growth seen likely to slow, keeping up pressure for stimulus (Reuters)

Companies trading ex-dividend: 

• Tue 16 April: WAM Global (WGB) – $0.06

• Wed 17 April: Washington H Soul Pattinson (SOL) – $0.40 

• Thu 18 April: The Reject Shop (TRS) – $0.10, WAM Capital (WAM) – $0.077, Horizon Oil (HZN) – $0.015 

• Fri 19 April: WAM Research (WAX) – $0.05 

• Mon 22 April: MFF Capital (MFF) – $0.06

Other ASX corporate actions today: 

• Dividends paid: Hub24 (HUB) – $0.185, Chorus (CNU) – $).14, Garda Property (GDF) – $0.01

• Listing: None

Economic calendar (AEST):

• 1:00 pm: China GDP Growth (Q1)

• 1:00 pm: China Industrial Production (Mar)

• 1:00 pm: China Retail Sales (Mar)

• 5:00 pm: UK Unemployment Rate (Feb)

• 8:00 pm: Germany ZEW Economic Sentiment Index

• 11:30 pm: Canada Inflation (Mar)

• 11:30 pm: US Building Permits (Mar)