Tuesday 2nd March 2021: Markets lower in cautious trade

Global Markets:

• Asian Stock Markets : Nikkei down 0.86%, Shanghai Composite down 1.21%, Hang Seng down 1.21%, ASX down 0.40%
• Commodities : Gold at $1719.20 (-0.22%), Silver at $26.09 (-2.19%), Brent Oil at $63.08 (-0.96%), WTI Oil at $60.10 (-0.89%)
• Rates : US 10-year yield at 1.424, UK 10-year yield at 0.750, Germany 10-year yield at -0.328

News & Data:

• (AUD) Cash Rate 0.10% vs 0.10% expected
• (USD) ISM Manufacturing PMI 60.8 vs 58.7 expected
• (USD) Final Manufacturing PMI 58.6 vs 58.5 expected
• (CAD) Manufacturing PMI 54.8 vs 54.4 previous
• (GBP) Final Manufacturing PMI 55.1 vs 54.9 expected
• German unemployment unexpectedly rises in February

Markets Update:

Asian stocks fell broadly on Tuesday despite sharp gains on Wall Street overnight on positive vaccine and stimulus news.

Shares in mainland China were lower on the day, with the Shanghai composite down 1.2% while the Shenzhen component shed 0.7%. Hong Kong’s Hang Seng index was more than 1% lower. In Japan, the Nikkei 225 fell 0.9% while the Topix index dipped 0.4% to finish its trading day. Meanwhile, Australia’s S&P/ASX 200 closed 0.4% lower.

Overnight, U.S. stocks rose the most in months as Treasury yields dropped, the House passed a $1.9 trillion coronavirus relief bill, manufacturers reported strong growth in activity in February and a third Covid-19 vaccine headed to clinics and pharmacies across the country.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.231 as it largely held on to gains from late February when it rose from levels below 90.

Upcoming Events:

• 01:30 PM GMT – (CAD) GDP m/m