Equities:
The Nasdaq Composite fell 2.7% on Wednesday to a two-month low as US treasury yields jump on Wednesday. The S&P 500 (US500) fell 1.31%, whereas the Dow Jones Industrial Average (US30) had limited losses of 0.39%.
The Asian markets are set to open lower with futures in Australia (AUS200), Hong Kong (HK50), and Japan (JP225) all pointing lower.
The Director of wealth management research at D.A. Davidson, James Ragan noted that market volatility has picked up and rising interest rates remain the key factor impacting company valuations, particularly on sectors with higher multiples.
Bonds & Yields:
The US 10-year yields rose by 7 points to 1.491%, with the market gauge of US inflation expectation of 2.5% over the next five years reaches its highest level since 2008. The US 2-year yields rose by 2 points to 0.143%.
Forex:
Major currencies were mixed overnight against the US dollar. The Euro fell from highs near $1.2112 to lows near $1.2043. The Australian dollar fell from highs near $0.7838 to lows near $0.7771. The Japanese yen was lower against the dollar from lows near 106.70 yen per dollar to highs near 107.15 yen per dollar.
Commodities:
Global oil prices were higher on Wednesday after a government report showing record fall in US fuel inventories as a result of a deep freeze that has impacted refineries in the US south. WTI crude rose 2.33% to $61.44 per barrel and Brent oil rose 2.04% to 63.98 per $barrel.
Metals:
Spot gold (XAUUSD) traded lower by 1.42% to $1708 an ounce. Iron ore was higher by 1.1% to % $177.45 a tonne.
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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