Daily summary: Dow Jones rallies as inflation concerns ease

• US 10-year Treasury yield rose slightly after auction
• Dow Jones reached new ATH
• US inflation rate at 1-year high

European indices finished today's session mostly higher, with DAX up for the third session to a new all-time high as the bond market sell off eased. On the economic data front, France's industrial output rose by 3.3%, easily beating market expectations of a 0.5% increase. On the corporate front, Adidas said it expects a strong rebound in sales this year and Inditex also sees higher online sales for 2021.

US indices are trading mixed. Dow Jones reached new record highs, the S&P 500 rose 0.7%, led by energy and cyclicals while Nasdaq Composite fell 0.4% after gaining as much as 1.6% earlier. Recent data showed that annual inflation jumped to 1.7%,  highest level since February 2020 while core inflation came in slightly below expectations at 1.3%. Meanwhile yield on the benchmark US 10-year Treasury note rose slightly to 1.52% Wednesday afternoon, from a session low of 1.514%, after the Treasury sold $38 billion in 10-year notes at an auction-high yield of 1.523%.  The result eased concerns that the US  debt burden would be too much for the market to bear, which would hit bond demand and force yields even higher. Meanwhile, investors await the imminent passage of President Biden's $1.9 trillion stimulus bill in the US and the ECB monetary policy decision tomorrow. According to a study conducted by Deutsche Bank, half of retail investors aged 25-34 intend to spend half of the money received from the checks to buy shares. In turn, investors from other age groups intend to invest about 1/3 of the funds received. According to the bank's calculations, this may mean that over $150 billion will move to the stock exchanges. Even assuming the worst-case scenario, that only 20% of the aforementioned funds will be spent on investments, it will still be a considerable amount.

WTI crude rose more than 0.3% and is trading around $64.20 a barrel, while Brent is trading 0.25% higher around $67.70 a barrel after today’s EIA report showed US crude oil inventories rose by 13.798 million barrels in the week ended March 5th. Elsewhere gold rose 0.4% to $ 1,723.00 / oz, while silver is trading 0.7 % higher slightly above $ 26.00 / oz.

US30 (Dow Jones contract) hit a record high as inflation fears eased and the House gets set to vote on President Biden's $1.9 trillion stimulus plan. Source: xStation5