Market Quick Take - 24 April 2026

Market Drivers and Catalysts

• Equities: US markets fell due to higher oil prices and weakness in technology stocks, while European markets steadied on earnings reports. Asian markets were mixed, with South Korea outperforming.
• Volatility: The VIX index is holding near 19, reflecting caution in the markets due to oil and geopolitical risks.
• Digital Assets: Bitcoin remains steady, supported by inflows into Bitcoin ETFs, while Ethereum experiences outflows.
• Fixed Income: Global yields are rising in response to higher crude oil prices.
• Currencies: The US dollar is gaining strength, with USDJPY nearing the significant 160.00 level.
• Commodities: Crude oil prices are increasing, while natural gas prices are falling, raising concerns about crop yields due to fertilizer shortages and El Niño.

Macro Events

Japan's annual inflation rose to 1.5% in March 2026, driven by higher transport and household item costs. Core inflation increased to 1.8%, still below the 2% target. The US-Iran ceasefire and Israel-Lebanon truce were extended, but disruptions in the Middle East have reduced oil and gas shipments, tightening global supply.

The S&P Global flash US Composite PMI rose to 52 in April, indicating modest growth, with manufacturing output seeing its strongest gain in four years. However, initial jobless claims rose slightly, remaining below last year's averages.

Equities Overview

USA

The S&P 500 fell 0.4%, with technology stocks leading the decline. Notable movements included ServiceNow dropping 17.8% and Intel rising 20% after positive revenue guidance.

Europe

European equities ended slightly higher, with the Stoxx Europe 600 gaining. Nestle and L’Oreal reported strong earnings, boosting investor sentiment.

Asia

Asian markets were mixed, with South Korea's Kospi rising due to strong domestic data, while Japan's Nikkei showed weakness.

Volatility and Options Market

Volatility has shifted to a cautious tone, with the VIX closing at 19.31. The options market indicates a defensive tilt, with higher demand for downside protection.

Digital Assets

Digital assets are trading cautiously, with Bitcoin around $77,800 and Ethereum near $2,315. Bitcoin ETFs are seeing inflows, while Ethereum ETFs are experiencing outflows, indicating a shift in investor sentiment.

Fixed Income

US treasury yields rose as crude oil prices increased, raising inflation concerns. The 2-year treasury yield closed near 3.84% and the 10-year yield at 4.33%.

Commodities

The Bloomberg Commodity Index is set for a weekly gain, driven by strength in the energy sector. Oil prices are rising due to ongoing geopolitical tensions, while US natural gas futures fell sharply after a significant stockpile increase.

Currencies

The US dollar is gaining ground, with EURUSD falling below 1.1700. The USDJPY is approaching the critical 160.00 level, which may prompt intervention from Japanese authorities.

Upcoming Macro Events

• UK March Retail Sales
• Germany April IFO Business Climate
• US Final April University of Michigan Sentiment

Earnings Reports This Week

Key earnings reports include Procter & Gamble, SLB, and Charter today, with major companies like Alphabet, Microsoft, and Apple reporting next week.