- 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
