Equities:
The Nasdaq Composite led the losses on Tuesday, down 1.69%, the S&P 500 (US500) fell 0.81% and Dow Jones Industrial Average (US30) fell 0.46%, erased most of the Monday gains.
The ASX 200 (AUS200) kicked off in the green on Wednesday open, up 0.4%, setting a positive tone for the Asian openings.
According to Morgan Stanley Private Wealth Management senior vice president – Katerina Simonetti, pullbacks saw early this year is natural, and believes that we’re still in a bull market. However, there is the risk of more significant pullbacks if interest rates start to rise quicker than expected.
Bonds & Yields:
Longer-dated Treasury yields retreated on Tuesday with US 10-year yields fell to around 1.4%, whereas US 2-year yields remained steady at 0.125%.
Forex:
The US dollar had weakened against other major currencies overnight. The Euro increased 0.3% from lows around $1.1992 to highs near $1.2095 in late US trade. The Aussie increase 0.72% from lows around $0.7737 to highs near 0.7836. The Japanese Yen was little changed and closed the US session at 106.67 yen per dollar.
Commodities:
Oil prices global were under pressure ahead of the OPEC+ meeting on output this Thursday. Supplies are expected to rise by at least 1 million barrels a day according to traders and analysts in a Bloomberg survey. WTI crude fell 2% to $59.43 a barrel. And Brent crude (XBRUSD) fell 1.73% to $62.59 a barrel.
Metals:
Spot gold (XAUUSD) rose 0.71% to $1735 an ounce. Iron ore was trading near $175.54 in late US trade.
Key events to watch this week:
– OPEC-JMMC Meetings (Thursday)
– U.S. unemployment claims, factory orders, and labor productivity (Thursday)
– U.S. February unemployment data (Friday)
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