The US equities traded lower on Wednesday. The Nasdaq Composite was down 2.01%. The Dow Jones Industrial Average and S&P500 both traded slightly lower, fell 0.01% and 0.55% respectively. The energy sector, transportation, and banks were the better performers as economic recovery favors cyclical stocks. Futures in Japan edged higher, and lower in Hong and Australia.
On the commodity trading side, global oil rose around 6% on Wednesday after a container ship ran aground in Suez Canal, and potentially disrupting global oil supply in the short-term. Brent oil rose by 5.55% to $64.16 per barrel. WTI crude rose 5.18% to $60.75 per barrel.
Treasury yields were steady overnight after reassurance on inflation by the Fed. The US Treasury sold $61 billion of five-year notes on Wednesday at a yield of 0.85%. The US Treasury will sell $62 billion of seven-year notes on Thursday. The US 2-year yields were flat near 0.148%, while the US 10-year yields fell 2 points to near 1.61%.
The dollar strengthened against major currencies on Wednesday. EURUSD fell from highs around $1.1851 to lows near $1.1809. AUDUSD fell from highs around $0.7628 to highs near $0.7580. Japanese yen (USDJPY) fell against the dollar from highs near 108.46 yen per dollar to lows near 108.96 yen per dollar.
To the delight of cryptocurrency traders, Elon Must tweeted that Tesla now accepts Bitcoin payment for the purchase of their cars. Bitcoin was trading near $54,000 in early Asia trading.
Iron ore and gold were steady overnight, near $160 a tonne and $1733 an ounce respectively.
Key events this week:
– US personal income and spending (Friday)
– Euro Summit (Friday)
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