US equities fell on Thursday as yields edge higher. Tech stocks such as Apple (-3.39%) and Tesla (-6.93%) were the main lagger weighting down on Nasdaq, which fell 3.02%. The Dow Jones Industrial Average and S&P500 were each down 0.46% and 1.48% respectively, retrieving from their recent record highs.
Asia stocks are set to open muted on Friday with futures in Australia, Japan, and Hong Kong near flat.
The spike in yields reflects the Federal Reserve’s tolerable stance on the growing inflationary pressure. The US 10-year yields were up 7 points to 1.75% for the first time since January 2020. The US 30-year yields touched 2.5%, the highest level since August 2019.
On the forex trading side, the dollar regained strength against major currencies overnight. EURUSD fell from highs around $1.1989 to lows near $1.1906. AUDUSD fell from highs around $0.7850 to lows near $0.7750. Japanese yen (USDJPY) fell against the dollar from near 108.63 yen per dollar to near 109.3 yen per dollar.
Global oil plunged on Thursday as vaccine rollouts stalled in some parts of the world, which cast uncertainties around economic recovery and oil demand. Brent oil dropped 7.47% to $62.92 per barrel. WTI crude fell 7.77% to $59.8 per barrel.
Gold rose 0.23% to near $1731 an ounce. Iron ore was mostly flat near $166 a tonne.
Bitcoin retested $60,000 overnight upon inflation concerns before retrieving back to $58,000.
Key events this week:
– Bank of Japan Monetary Policy Decision (Friday)
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