Asian bond yields mostly dropped, with the 10-year JGB down -0.8 bp at 0.035%, after dovish BoJ comments. The 10-year Treasury yield has stabilized, after yesterday’s slide and is trading at 2.86%. What other events and data do you need to keep a tab on? These are discussed in the 1 March Market Moving Fundamental Events.
1 March, HotForex – The dip in yields yesterday did nothing to boost stock market confidence and Wall Street closed with broad losses. The negative sentiment spilled over into Asian markets and Nikkei and Topix closed with losses of 1.56% and 1.59% respectively, and stocks were also under pressure in Hong Kong and Australia with materials and healthcare stocks leading the way.
Mainland China bourses outperformed after a better than expected Caixin manufacturing PMI and the CSI 300 is up 0.42%.
European Market Outlook
Markets remain nervous ahead of Powell’s hearing after the Fed Chairman’s comments hit markets earlier in the week. Reports that Trump plans a 25% tariff on steel imports is adding to the pressure. U.S. futures are mostly down, while oil prices are marginally higher on the day with the front end WTI future trading at USD 61.70 per barrel.
Today’s calendar focuses on manufacturing PMI readings for the Eurozone, the U.K., and Switzerland. the U.K. also has lending data, the Eurozone jobless numbers and there are bond auctions in Spain and France.
The dollar has remained underpinned versus most currencies, bolstering to the USD index (DXY) to a five-week high of 90.74 and pushing EURUSD to a six-week low of 1.2183. AUDUSD has registered the biggest move in trade so far on the calendar day out of the currencies we track, showing a 0.4% decline, with the Australian dollar underperforming amid reports that Trump is set to announce a 25% tariff on U.S. steel imports. Australian is the world’s biggest export of iron ore, which is the base metal of steel.
AUDUSD logged a two-month low at 0.7717, and AUDJPY, across that many consider, is a forex market barometer of global investor risk appetite, has forayed into nine-month low terrain. USDJPY, while having recouped to the upper 106.0s, edged out a two-day low of 106.53 earlier in Tokyo trade, and EURJPY posted its lowest level since last mid-September, at 129.85.
The yen’s outperformance has come amid a backdrop of falling equity markets amid a backdrop of Fed tightening expectations and concerns about Trump starting trade wars.
Main Macro 1 March Market Moving Fundamental Events
- UK & Eurozone Manufacturing PMI – The February Eurozone Markit manufacturing PMI, is seen unchanged at 58.5.
- US Core PCE and Jobless claims – Initial jobless claims for the February 17 week will be scrutinized at it coincides with the BLS survey week. It is expected to released at 226K from 222K last week. Personal income is expected to grow 0.2% in January, while consumption should rise 0.2% as well.
- Fed Chair Powell Testifies
- US ISM Manufacturing PMI – ISM is expected to drop to 58.7 in February from 59.1.
Support and Resistance Levels
This article about 1 March Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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