Equities:
The $1.9 trillion Covid-19 relief bill is ready to be approved by the U.S House after passing the US Senate on Saturday. Futures in Australia, Hong Kong and Japan all pointing higher.
US equities finished higher on Friday supported by stronger employment data. The Nasdaq Composite rose 1.55%. The S&P 500 rose 1.95%, and the Dow Jones Industrial Average followed, rose 1.85%.
The chief investment officer at Emirates NBD, Maurie Gravier suggests that the markets are reasonably priced for post-Covid growth and recovery. However, there could be more potential upside for risk assets with inflation concerns already priced in.
Bonds & Rates:
The long-term US treasury yields continued its rise on Friday, with the US 10-year yields rose by 2 points to 1.57%. The US 2-year yields was unchanged to near 0.14%.
Currencies:
Major currencies were again weaker against the US dollar on Friday. The Euro fell from highs around $1.1978 to lows near $1.1894 and closed the week at $1.1917. The Australian dollar fell from highs around $0.7731 to lows near $0.7623 and closed the week at $0.7686. The Japanese yen was lower against the dollar from lows near 107.82 yen per dollar to highs near 108.64 yen per dollar and closed the week at 108.34 yen per dollar.
Commodities:
Global oil prices were higher on Friday after Saudi Arabia convinced fellow OPEC+ members to keep output largely unchanged. Moreover, with the US job data exceeded forecast — 379,000 jobs created as opposed to the projection of 197,000 jobs – demand for oil products is likely to increase. As a result, WTI crude rose 3.54% to $66.09 per barrel and Brent oil rose 3.93% to $69.36 per barrel.
Spot gold were mostly flat on Friday and closed near $1698 an ounce. Iron ore was lower by $3.8a tonne to 9-year high of $174.65 a tonne.
Key Events This Week:
- Japan GDP data (Tuesday)
- EIA oil inventory (Wednesday)
- US February CPI (Wednesday)
- ECB monetary policy meeting (Thursday)
Read more on forex trading for beginners.
The market is dynamic and presents opportunities to trade. ZERO Markets is a regulated broker globally that gives its traders the confidence to trade across a broad range of asset classes including CFDs on Forex, Shares, Indices, Commodities, and Cryptocurrencies. Start trading with ZERO on tight spreads from 0.0 pips today!
DISCLAIMER: The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. Zero Markets has made every effort to ensure the accuracy of the information as at the date of publication. Zero Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, Zero Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the Zero Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from Zero Markets website,www.zeromarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. Zero Markets recommends that you seek independent advice. DISCLAIMER: ZERO Financial Pty Ltd (ZERO MARKETS, ABN 72 623 051 641) is an Authorised Representative (no: 001273819) of First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFSL 286354).
Leave a Reply