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German industrial production declined by 0.4% month-over-month in March 2024, compared with market forecasts of a 0.6% drop, after a downwardly revised 1.7% growth in the prior month. It was the first decrease since last December, mainly due to falls in energy output (-4.2%) and the industry sector (-0.4%). On the other hand, construction activity grew by 1.0% Production shrank for both consumer goods (-1.4%) and intermediate ones (-0.6%) while output of consumer goods edged up 0.1%. The less volatile three-month on three-month comparison showed that production was 0.1% higher from January to March 2024 than in the previous three months. Yearly, industrial output fell 3.3% in March, softer than the prior 5.3% slump.

European equity markets were set for a lower open on Wednesday, reflecting a cautious mood in global markets as investors continued to assess the economic and interest rate outlook. Investors also braced for earnings reports from major European firms including ABInbev, Alstom, BMW, Munich Re, Siemens Energy and Skanska. Euro Stoxx 50 futures shed 0.15% in premarket trade.

The S&P/NZX 50 index dropped 0.15% to 11,782.9 on Wednesday, sliding for the third straight session and closing near its lowest level in seven weeks, following hawkish remarks from Minneapolis Fed President Neel Kashkari. On Tuesday, Kashkari said that the US central bank is likely to keep interest rates steady for an extended period until clear evidence of disinflation emerges. Also, investors appear unsettled ahead of crucial data releases from China, including trade figures and inflation data. Meanwhile, in Australia, the central bank held onto its 12-year high cash rate of 4.35% on Tuesday, but warned about the risks of upside price pressures. Among individual stocks, notable declines were seen from Spark NZ (-2.3%), Summerset Group (-0.9%), Mercury NZ (-1.7%), Ryman Healthcare (-1.3%), and Fletcher Building (-1.9%).

India's equities dropped 371.6 points or 0.5% to 73,135.7 in early deals on Wednesday, falling for the second straight session while reaching their lowest level in over two weeks, amid losses from consumer durables, banking, financial services, and tech. Sentiment remained downbeat due to uncertainty around India's election outcome as Prime Minister Narendra Modi seeks to win his third successive term. Meanwhile, corporate earnings scrutiny continued, with many traders exercising caution ahead of updates from domestic companies such as Larsen & Toubro, Tata Power, and Hero MotoCorp later today. Market participants also anticipated April trade data from India's top trading partner, China, on Thursday after exports and imports fell in March. Dr. Reddy's Laboratories tumbled 3.4% after its quarterly results missed market forecasts. Other early decliners were Asian Paint (-2.5%), Hindustan Unilever (-1.9%), ICICI Bank (-1.3%), and HDFC Bank (-1.3%).

The Japanese yen depreciated past 155 per dollar, giving back about half of the gains made last week even as Japanese authorities continued to warn markets against extreme currency moves. Finance Minister Shunich Suzuki reiterated a warning that authorities stand ready to respond to excessive foreign exchange volatility, while Bank of Japan Governor Kazuo Ueda said they will study the impact of yen moves on inflation to guide policy decisions. Last week, the yen bounced as much as 5.2% from low to high on suspected government intervention, with BOJ data suggesting it spent nearly $60 billion to defend the currency. Meanwhile, analysts argued that interventions would only buy authorities some time given stark interest rate differentials between Japan and the US. US Treasury Secretary Janet Yellen also said over the weekend that interventions should be rare and consultations should take place, indicating a lack of coordination between Japan and the US on foreign exchange policy.