Stocks in the US faced challenges making a headway during Wednesday's afternoon session, with the S&P 500 and Nasdaq hovering near the flatline. Meanwhile, the Dow Jones was up by more than 100 points, poised to extend its winning streak to six days. Investors remained focused on corporate earnings reports and the Federal Reserve's policy outlook, especially after receiving mixed comments from several central bank officials. On the corporate front, shares of Uber sank nearly 9% after the company missed on earnings. Tesla also fell 1.7% after reports that U.S. prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities. Conversely, Lyft Inc soared 4.5% after a revenue beat. Arista Networks jumped over 6% on strong earnings. After the bell, Arm, Instacart, and Robinhood are set to report their quarterly results.

The Riksbank lowered its key policy rate by 25bps to 3.75% on May 8th 2024, in line with market expectations, saying inflation is approaching the target while economic activity is weak. It is the first reduction in borrowing costs since 2016, following the tightening campaign that started two years ago. Policymakers added that if the outlook for inflation still holds, the policy rate is expected to be cut two more times during the second half of the year. However, the outlook for inflation is uncertain and risks that may cause inflation in Sweden to rise again are primarily linked to the strong US economy, the geopolitical tension and the krona exchange rate. The adjustment of monetary policy going forward should therefore be characterised by caution, with gradual cuts to the policy rate.

Retail sales in Brazil remained unchanged in March 2024, following a 1% increase in the previous month, opposing mark expectations of a 0.1% decrease. Retail sales volume declined month-on-month for fuels & lubricants (-0.6%), food products & beverages (-0.3%), furniture & appliances (-2.4%), books, newspaper & stationary (-1.1%), equipment for office, IT & communication (-8.7%) and vehicles & motorcycle and their parts (-1.4%). In contrast, sales were higher for pharmaceuticals (+1.4%). Compared to the same month from previous year, retail sales rose by 5.7%.

The annual inflation rate in Chile rose to 4 percent in April of 2024 from 3.7 percent in the previous month. On a monthly basis, consumer prices edged up 0.5 percent, slightly up from a 0.4 increase in the previous month and above market forecasts of a 0.35% rise. Notably, the largest monthly increases were recorded for transportation (+1.1%), miscellaneous goods & services (+0.9%), household equipment & maintenance (+0.8%), food & non-alcoholic drinks (+0.7%), and housing & utilities (+0.7%). On the other hand, costs declined for clothing & footwear (-1.9%), alcoholic beverages & tobacco (-0.5%), and insurance & financial services (-0.2%).

The dollar index rose above 105.5 on Wednesday, hitting one-week highs as hawkish remarks from a Federal Reserve official lifted the currency. Minneapolis Fed President Neel Kashkari said on Tuesday that he expects that central bank stay put for an extended period until there is clear evidence of disinflation, and did not rule out the possibility of a hike if inflation accelerates. Investors now look ahead to further central bank commentary and Friday’s Michigan Consumer Sentiment Index for more clarity on the rates path. Externally, the dollar continued to strengthen against the yen even as Japanese authorities reiterated warnings against extreme currency moves.

Exports from Taiwan rose 4.3% year-on-year to USD 37.48 billion in April 2024, slowing sharply from a two-year high of 18.9% in March and coming well below market estimates of a 10.15% growth. There was a sharp increase in sales for information, communication and audio-video products (114.6%), but was offset by the declines from parts of electronic products (-17.7%), machinery (-13.1%), base metals (-10.2%), and plastics & rubber (-8.2%). Among key trading partners, shipments went up to the US (81.6%), and ASEAN countries (2.8%), while exports to Japan (-39.6%), China & Hong Kong (-11.3%), and Europe (-6.5%), declined. For the first four months of the year, exports were 10.6% higher compared to the corresponding period in 2023.