Markets Wrap: Oil sinks, Dollar Strengthens; Asia Stocks for Mixed Open

Futures in Hong Kong and Australia are pointing higher on the last trading day of the quarter as investors are eyeing for US infrastructure stimulus. Futures in Japan dipped as the largest Japanese bank, Nomura is taking a hit from the disposal of positions by Bill Hwang’s Archegos Capital Management .

US equities fell off on Tuesday upon the upward bond yields pressure. The Dow Jones Industrial Average fell 0.3% from the previous record-peak. The S&P 500 and Nasdaq Composite fell 0.03% and 0.1% respectively as utility and consumer staples lagged behind. 

The US 10-year yields touched 1.77% on Tuesday before subsiding as banks reduced debt holdings ahead of the supplementary leverage ratio expiry on the 31st of March. US 2-year yields were steady again near 0.15%. 

Global oil halted gains on Tuesday as commodities traders looked before tomorrow’s OPEC+ meeting. Brent crude fell 1.46% to $US64 per barrel. WTI crude fell 2.01% to $US60.32 per barrel.

The dollar strengthened for a second day against major currencies on Tuesday. EURUSD fell from highs around $1.1774 to lows near $1.1712. AUDUSD fell from highs around $0.7663 to lows near $07585. The Japanese yen (USDJPY) fell against the dollar from highs near 109.79 yen per dollar to lows near 110.43 yen per dollar. 

Gold sunk below $1700 an ounce to a multi-month low, currently trading near $1684 per ounce. Iron ore fell by 0.7% or $1.15 to near $166.55 a tonne.

Key events this week:

  • US Infrastructure Plan (Wednesday)
  • EIA Crude Inventory Report (Wednesday)
  • AU Retail Sales and Trade Balance (Thursday)
  • OPEC Meeting (Thursday)
  • US Employment Date (Friday)

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