Thursday 4th March 2021: Treasury fears put markets in reverse gear

content provided with permission by IC MArkets

Global Markets:

  • Asian Stock Markets : Nikkei down 2.13%, Shanghai Composite down 2.05%, Hang Seng down 2.15%, ASX down 0.84%
  • Commodities : Gold at $1707.85 (-0.46%), Silver at $25.93 (-1.73%), Brent Oil at $64.19 (+0.19%), WTI Oil at $61.37 (+0.15%)
  • Rates : US 10-year yield at 1.455, UK 10-year yield at 0.753, Germany 10-year yield at -0.315

News & Data:

  • (USD) Crude Oil Inventories 21.6M vs -1.3M expected
  • (USD) ISM Services PMI 55.3 vs 58.7 expected
  • (USD) ADP Non-Farm Employment Change 117K vs 203K expected
  • Yemen Houthi Rebels say to have launched missile at (Saudi Aramco) Facility in Jeddah

Markets Update:

Asian stocks fell on Thursday as rising yields on benchmark U.S. Treasury bonds fanned worries about inflation and the economic outlook. Investors awaited U.S. Federal Reserve Chairman Jerome Powell’s speech at a Wall Street Journal conference later today, where he may address concerns about the risk of a rapid rise in long-term borrowing costs.

Mainland Chinese stocks slipped on the day, with the Shanghai composite down 2.1% while the Shenzhen component dropped 3.5%. In Japan, the Nikkei 225 fell 2.1% while the Topix index shed 1.0%. South Korea’s Kospi also slipped 1.3%.Shares in Australia also declined as the S&P/ASX 200 fell 0.8%. Hong Kong’s Hang Seng index closed 2.15%

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.049 following an earlier low of 90.972. Other safe-haven currencies were soft, with the Swiss franc flirting with a four-month low against the dollar and a 20-month trough versus the euro.

Oil prices rose for a second straight session early on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day underpinned alongside a drop in U.S. fuel inventories.

Upcoming Events:

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