- European indices end February in the red
- US 10-year treasury yield ease from 1 year highs
- Gold hit 8-month low below $ 1,730 / oz
European bourses finished today's session sharply lower, as investors remain concerned that the surge in Treasury yields and rising inflation rates may force central banks to tighten monetary policy earlier than originally assumed. These fears completely overshadowed ECB comments. Policymakers signaled that the central bank could provide more support, if rising yields hurt the Eurozone recovery. DAX 30 fell 0.7%, CAC lost 1.4% and FTSE100 finished 2.5% lower.
US indices are swinging between gains and losses. The Dow Jones fell 0.6% while the S&P 500 and Nasdaq moved higher as Treasury yields pulled back from their 1-year highs. On the data front, personal spending and income surged in January and PCE inflation came in slightly above forecasts. Meanwhile, the House will vote today on the new $1.9 trillion stimulus plan, but the Senate announced the minimum wage hike to $15 wage proposal cannot be part of the economic relief package.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appWTI crude fell more than 2.5% and is trading slightly below $62.00 a barrel, while Brent is trading 1.30% lower around $66.00 a barrel due to concerns about a looming increase in crude oil supplies from OPEC+ as the cartel meets on March 4th. Meanwhile refineries in Texas began to resume operations. Elsewhere gold plunged nearly 2.3% to $ 1,729.00 / oz, while silver is trading 3.5 % lower near $ 26.40 / oz as rising long-term yields drive investors away from the precious metals which have become less attractive because they offer no interest.
USDCAD pair hit a 1-week high of 1.27 during today's session, amid a drop in oil prices and concerns over surging bond yields, although the Canadian bonds were on a flatter curve. However the pair failed to break above the next resistance at 1.2736 and pulled back to the aforementioned 1.27 level which is additionally strengthened by 200 SMA (red line). As long as the price sits above it, buyers seem to be in advantage. However should a break lower occurs, nearest support to watch lies at 1.2641. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
