Markets Wrap: US Futures Slip; Yields Higher

Futures were mixed in Hong Kong, Japan, and Australia after US futures slipped after Federal Reserve officials expecting two rate hikes by the end of 2023.  US share market fell overnight with the Dow Jones index down 0.8%. The S&P 500 lost by 0.5% and the Nasdaq lost 0.2% after Jerome Powell downplayed the risk of an immediate rate increase. 

US long-term treasuries yields jumped after policymakers flagged tighter policy settings. US 10-year yields jumped 8 points to 1.575%. US 2-year yields lifted by 4 points to near 0.205%. 

Forex trading saw the greenback had its biggest jump against other major currencies. According to ZERO Markets’ Meta Trader 5 platform, the Euro fell from highs near $1.2135 to lows near $1.2000 against the dollar. The Aussie dollar fell from highs near $0.7715 to lows around $0.761 against the dollar. 

Commodity trading saw crude oil declined as the gain in the dollar reduced the appeal of the commodities priced in the currency.

Iron ore prices fell by 3.9% to near $213.6 a tonne. Precious metals trading saw gold trading steadied near $1820 an ounce.

Key events this week (Economic Calendar):

  • Rate decision from Switzerland and Norway (Thursday)
  • Bank of Japan rate decision (Friday)

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