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As the broader market focus stays on the fallout from the Middle East crisis, it is easy to expect inflation to keep running up on the back of higher energy prices. But as we look to the UK CPI report later, the expectation is for price pressures to ease in April. That at least on an annual basis. So, what's the deal here?Let's take a quick look as to why that is and what can we expect.The headline numbers are still very much expected to be impacted by higher energy prices from the US-Iran conflict. That should lead to monthly inflation jumping by around 0.9%. However, the annual estimate is expected to ease to 3.0% (from 3.3% previously) due to a couple of adjustments and base effects.In particular, services inflation is the one that will be the most impacted.Firstly, there was the data error by the Department of Transport in overstating the inflation numbers for April 2025. As noted by the ONS: "The incorrect data overstate the number of vehicles subject to Vehicle Excise Duty (VED) rates applicable in the first year of registration."The error led to a raised CPI estimate of around 0.12%, which was not corrected for after. However, the impact on services inflation is roughly double that when you account for the more detailed breakdown.Secondly, there was the big jump in water and sewage prices in April 2025 due to an industry-wide infrastructure upgrade. The hike was frontloaded as part of a 5-year investment plan and averaged around £123 or roughly 26%. So far this year, the same category is only suggesting a 5% price increase. So taking that into account, it could lead to another 0.2% drop in headline annual inflation.Thirdly, MNI points out that there will also be an offsetting drop in electricity and gas prices amid "policy costs" being removed from bills during the autumn budget."This is the case for both the 60% of consumers on price cap tariffs and the majority of the 40% of consumers on fixed price tariffs (although there were some policy costs that didn’t need to be paid by smaller suppliers so the reduction for these will be less). The BOE is forecasting a -0.34% change in contribution from this alone."And lastly, there will also be other base effects to account for amid stronger airfares and social rents in April 2025. So, those will also reflect a decline when weighed up against April this year.In terms of core prices, the annual estimate is expected at 2.6% - marking a drop from 3.1% in March. That will largely be tied to easing in services inflation on the caveats pointed out above. As such, it is not much reason to think of it being a material change to the UK inflation trend. This article was written by Justin Low at investinglive.com.

Gold (XAU/USD) drops to a fresh low since March 30 following an Asian session uptick to levels just above the $4,500 mark on Wednesday, and seems vulnerable to a further decline amid a bullish US Dollar (USD).

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.20 during the Asian trading hours on Wednesday. The WTI price trades with mild losses as traders weigh mixed signals from US President Donald Trump on whether the United States (US) will resume the Iran war. 

EUR/JPY loses ground for the second successive day, trading around 184.30 during the Asian hours on Wednesday. The technical analysis of the daily chart indicates the currency cross is remaining slightly below the upper boundary of an emerging descending wedge pattern.

The EUR/USD pair trades vulnerably near the two-month low of 1.1596, posted on Tuesday, during the Asian trading session on Wednesday.

Bankr recommends that affected users create a new wallet, generate a new seed phrase on a clean device and revoke approvals if remaining assets can’t be moved.

USD/CHF extends its gains for the second successive day, trading around 0.7890 during the Asian hours on Wednesday. The pair remains stronger as safe-haven demand supports the US Dollar (USD).

China announced it will purchase 200 Boeing jets, review rare earth export licences for civilian use and pursue reciprocal tariff cuts on $30 billion or more of goods with the US as part of a broad trade package. Summary: The following is drawn from a China Commerce Ministry statement.China will purchase 200 Boeing jets, with the US committing to provide engines, parts and supply guarantees for components as part of the dealBeijing will review rare earth export licence applications for civilian use and both sides agreed to jointly study and resolve each other's concerns on rare earths, a significant softening of China's posture on a critical strategic commodityChina is restoring registration of eligible US beef exporters and will send a technical team to the US to address some beef import suspensions, reopening a market that had been closed to American producersThe US and China are targeting reciprocal tariff cuts on $30 billion or more of goods each, with Washington's tariffs on Chinese goods capped at the level set under the Kuala Lumpur arrangementBoth sides agreed to seek an extension of the Kuala Lumpur trade arrangement and to establish boards of trade and investment to provide institutional guarantees for bilateral commerceChina and the United States announced a sweeping package of trade concessions late on Tuesday, with Beijing committing to purchase 200 Boeing jets, ease restrictions on rare earth exports for civilian use, and pursue reciprocal tariff cuts on at least $30 billion of goods on each side, in the most substantive deliverable yet from the framework agreed at the Kuala Lumpur summit.The China Commerce Ministry statement covered an unusually broad range of sectors simultaneously. The Boeing deal, under which the US will provide engines, parts and supply guarantees for components, represents a major re-entry for the American planemaker into one of the world's largest aviation markets, from which it has been largely excluded for several years amid bilateral tensions and regulatory disputes. The scale of the order, 200 aircraft, would rank among the largest single purchases in Boeing's commercial history and will provide a significant boost to the company's order book and production planning.The rare earth announcement is arguably the more geopolitically significant element of the package. China controls the vast majority of global rare earth mining and, more critically, processing capacity, giving it effective leverage over supply chains for electric vehicles, wind turbines, defence electronics and semiconductor manufacturing across the Western world. The commitment to review export licence applications for civilian use, and to jointly study and resolve each other's concerns on the issue, stops short of a full lifting of restrictions but signals a meaningful willingness to use rare earth access as a diplomatic tool in a constructive rather than coercive direction.On agricultural trade, China is restoring registration of eligible US beef exporters and will send a technical team to the United States to address specific import suspensions, reopening a market that has been a persistent source of bilateral friction.The broader trade framework envisages reciprocal tariff cuts on $30 billion or more of goods on each side, with US tariffs on Chinese products capped at the level established under the Kuala Lumpur arrangement. Both sides agreed to seek an extension of that arrangement and to establish formal boards of trade and investment to provide institutional continuity for the bilateral relationship beyond the current summit cycle.---The package of concessions is the most substantive deliverable to emerge from the Kuala Lumpur trade arrangement and will provide a significant boost to Boeing, which has been largely shut out of the Chinese market for several years. The commitment to review rare earth export licence applications for civilian use is the headline geopolitical signal: China controls the overwhelming majo

Samsung Electronics union to strike Thursday after South Korea mediation talks collapseCiti bull case Brent hitting $150 near term as oil markets under-price disruption riskOil slips a little on Trump peace talk but supply fears keep prices elevatedEU strikes provisional deal to cut US tariffs ahead of Trump's July 4 deadlinePBOC sets USD/ CNY central rate at 6.8397 (vs. estimate at 6.8072)The People's Bank of China has left its Loan Prime Rates (LPR)s unchanged for the 12 monthPreview: Australia April jobs data eyed as AUD rally and RBA rate path hang in balanceChina to scrap SME loan targets in shift toward market-driven credit, report saysMore from Fed's Paulson, says risks are super-elevated and hike on table if growth surgesJapan manufacturers' mood edges up in May but outlook darkens, Tankan showsPaulson says current Fed policy appropriate but markets right to price in hikesECB's Nagel says bank may have to act in June as Iran energy shock spreadsBOJ may slow or pause bond taper at June meeting, analysts sayWar ICYMI - Trump briefed on Iran strike options after pausing attack, officials sayUS Senate advances war powers vote to curb Iran strikes without Congress (doesn't matter)ECB's Kocher warns June rate hike unavoidable if Hormuz stays shutOil: Private inventory survey shows a headline crude oil draw much greater than expectedSummary:US crude inventories fell for a fifth straight week, with API data showing a 9.1 million barrel draw for the week ended May 15, alongside a 5.8 million barrel gasoline draw and a 1 million barrel distillate decline; an SPR drawdown of nearly 10 million barrels will dominate Wednesday's EIA reportTwo Chinese supertankers carrying 4 million barrels of Middle East crude exited the Strait of Hormuz on Wednesday after waiting in the Gulf for more than two months, the first notable passage through the chokepoint in some timeECB Governing Council member Kocher said on Austrian prime-time television that a June rate hike is unavoidable if the Hormuz Strait remains closed, delivering a notably more unconditional signal than his hedged comments to specialist media a week earlierPhiladelphia Fed President Paulson said in prepared remarks that current policy is appropriate but called it healthy that markets are pricing in an extended hold or further hikes; in follow-up comments she described risks to both inflation and the outlook as super-elevated and put a rate hike explicitly on the tableChina held its one-year and five-year loan prime rates unchanged for a twelfth consecutive month at 3.00% and 3.50% respectively, in line with market expectationsSamsung Electronics faces a Thursday strike by over 47,000 South Korean workers after mediation talks collapsed, with the union blaming delays in management decision-making; Samsung shares fell on the newsAsia-Pacific equities declined on a weak US handover, with the Nikkei off 1% and Hong Kong and mainland China each down around 0.5%, weighed by higher yields, the global bond rout and ongoing geopolitical uncertaintyWednesday's session was dominated by the familiar tug of war between diplomatic optimism and supply reality, with crude markets ultimately siding with the latter as the weight of inventory data and central bank hawkishness kept the broader tone cautious despite Trump's latest assertion that the Iran war will end very quickly.On the supply side, the numbers continued to tell their own story. API data showed US crude stocks fell by 9.1 million barrels in the week ended May 15, a fifth consecutive weekly draw, with gasoline inventories down 5.8 million barrels and distillates off by around 1 million barrels. The gasoline figure in particular will be watched closely ahead of the EIA report due at 10.30am Eastern on Wednesday morning, with a draw of that size carrying the potential to rattle RBOB sellers who had been leaning the other way. The distillate number edges the market closer to the psychologically significant 100-million barrel mark, and

The United Kingdom (UK) Office for National Statistics (ONS) will publish the high-impact Consumer Price Index (CPI) data for March at 06:00 GMT. 

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the second successive day and hovering around the six-week high of 99.43, reached on Tuesday, during the Asian hours on Wednesday.

The crypto ETFs were intended to be part of Trump Media & Technology Group’s broader crypto strategy, which included the launch of the Truth.fi financial platform.