After last week’s biggest weekly decline in at least a month, the pan-European and three major U.S. stock indexes rebounded strongly in the first trading day of March. Boeing, which received increased orders from United Airlines, rallied higher, pushing the Dow on track for its biggest closing gain in four months. Energy stocks led the sector to support the S&P higher. Top Chinese stocks surged collectively.
Last weekend the U.S. House of Representatives voted to pass the $1.9 trillion stimulus package to the Senate; the U.S. Food and Drug Administration (FDA) approved the emergency use authorization for the new crown vaccine developed by Johnson & Johnson, and the U.S. has the third approved use of the new crown vaccine, which is also the first single shot vaccination for the new crown in the U.S. These two pieces of news were seen as positive, pushing stocks higher in Europe and the U.S. on Monday and easing the rise in U.S. bond yields.
The U.S. dollar index continued to move higher, spurred by expectations of an economic recovery and rising Inflation, while some industrial metals such as copper, as well as Gold and Crude Oil, continued to fall. Bitcoin had regained above the $49,000 mark in early U.S. trading, rising more than 11% in 24 hours and rallying nearly $6,000 at one point during the day.
Overnight Highlights
The U.S. ISM manufacturing index rose to 60.8 in February from 58.7 in January, a new high in about three years, and the market expected 58.9. The price sub-index rose to 86.0 in February, a new high since July 2008.
Media sources said Senate Democratic lawmakers would drop the minimum pay plan from the $1.9 trillion stimulus bill. The media believes the move could please some unions and business groups who fear the pay raise will delay much-needed relief for the most Epidemic-hit industries; given that Democrats managed to introduce a new stimulus case by March 14, congressional leaders from both parties may choose to raise the federal government’s minimum pay requirement in future legislation.
Fed Governor Brainard, who was rumored last year as a possible next Fed chairman, said the epidemic proves that the financial markets have multiple structural and cyclical flaws and that reforms are needed to deal with the next shock, especially from outside the financial system. She suggested that regulators, using the experience of the new crown epidemic to make reforms regarding the structural fragility of financial markets, believe that the valuation of many assets has improved compared to historical standards and will evaluate money funds, bond funds and the U.S. Treasury market.
United announced that it placed an order with Boeing for an additional 25 737 MAX aircraft to ship in 2023; it has added orders for 40 and five more of the type to ship in 2022 and 2023, respectively, and plans to acquire 94 new aircraft of the type over the next two years, by the end of 2023. Comments said this is a sign of confidence in Boeing’s aircraft type.
Media sources said Monday that OPEC will increase production by 1.6 million barrels per day starting in April. The market had previously expected OPEC+ to agree to increase production at this Thursday’s meeting, especially depending on whether Saudi Arabia cancels the voluntary additional production cuts of 1 million barrels per day in February and March at once. Citi expects OPEC+ to increase production by about 500,000 bpd from April, with Saudi Arabia and Russia unlikely to continue their current voluntary additional production cuts.
In addition, some refineries in Texas that were previously shut down due to severe cold weather have restarted recently, including ExxonMobil’s restart of its refinery in Beaumont, Texas. This is also seen as the driver of the decline in oil prices on Monday.
ECB Governing Council member and Bank of France President Villeroy said that the ECB will keep its easing policy unchanged as long as necessary; the central bank is prepared to adjust several policy tools, including interest rates, and may cut the already negative deposit rate if necessary; there is no risk of economic overheating in Europe; in order to have tolerance for future inflation exceeding expectations, it may have to strengthen forward guidance; treasury bonds like the recent Yield rises like the recent one are not guaranteed and the ECB must respond; the central bank “can and must” react to unwanted monetary tightening; the number one tool is to actively use the flexibility of the PEPP bond purchases introduced during the epidemic.
Citi strategists expect Bitcoin to play a greater role in the global financial system and may become “the currency of choice for international trade” in the coming years; believe Bitcoin has advantages in the current global payment system such as decentralized design, but lacks foreign exchange exposure and traceability; weigh potential obstacles and opportunities, according to their report opportunities can conclude that Bitcoin is at a turning point and that we could be at the beginning of a major shift into the mainstream for cryptocurrencies.
Bank of America strategists believe that if the yield on the 10-year U.S. Treasury note rises above 1.75%, investors are likely to return to traditional fixed-income assets, as historical performance shows that this is “the tipping point at which asset allocators begin to return to bonds. Paulsen believes that U.S. bond yields may pause after rising to around 1.5% before launching a new uptrend, one reason being the recent cold weather, which could lead to weak economic data next month – including a slowdown in retail sales. He believes there is room for yields to rise this year, and that a slower intermittent rise, rather than a one-off finish, would be much less of a shock to the economy and stocks.
U.S. stocks rose more than 2% in the session Boeing led the Dow, while the financial and energy sectors led the S&P
The three major U.S. stock indexes opened higher and collectively rose more than 2% during the day. The Dow has risen more than 600 points in early trading, the Dow components, Boeing rose more than 6%, is expected to record the largest closing gain since November 9 last year, Dow Chemical, Intel, Apple, Chevron rose more than 3%.
The S&P 500’s 11 sectors rose across the board, led by energy, which rose more than 3% in early trading, narrowed to less than 3% in midday energy, while utilities and financial gains expanded to more than 3%.
New energy auto stocks rose collectively, tesla once rose more than 6% in midday trading, the share price exceeded $700; intraday Azera rose nearly 8%, Xiaopeng car rose more than 4%, ideal car rose more than 3%. Chinese audio and video, content stocks, Lychee rose nearly 20%, interesting headlines rose more than 10%, cheerful times rose more than 9%, Beili Beili rose about 9%, Douyu rose nearly 7%, Tiger teeth rose more than 5%, Tencent Music rose more than 3%.
Pan-European stock index ended two consecutive negative hit nearly four months the largest gain travel sector rose more than 3% to lead
Pan-European stock index reversed the momentum of two consecutive days of decline. Europe’s Stoxx 600 index closed up 1.84% on Monday at 412.44 points, the largest closing gain since November 9 last year, out of the lowest closing trough since February 1 set on Friday.
The stock index closed down 1.64% on Friday, the biggest closing loss since Jan. 29, and fell 2.38% last week, the biggest one-week drop since the week of late January.
Among stocks, Spanish airline and travel IT solutions provider Amadeus jumped 8% on Monday, leading the Stock Exchange 600 index. Amadeus was raised by a number of large brokerage firms because of the bullish tourism recovery this year, the target price. French food giant Danone rose 1.4% as the company took the first step toward selling its stake in Mengniu and will use the proceeds from the sale to buy back shares. Swiss cloud peripheral supplier Logitech rose 1.6% after the division raised its sales growth forecast for this year to about 63% from 57%-60%.
Stoke 600’s 19 sectors rose across the board Monday, led by sectors such as travel, where the economy is back to work favorably. Travel and leisure rose more than 3%, basic resources, industrial products and services, construction and building materials, financial services, retail, chemicals, food and beverage, technology, real estate, personal and household goods are up more than 2%, even if the bottom of the increase in the bank, also had a 1% gain.
Major European stock indexes rebounded collectively on Monday, all up more than 1%, erasing Friday’s losses. Germany‘s DAX 30 index closed up 1.64%, France’s CAC 40 index rose 1.57%, the U.K. FTSE 100 index rose 1.62%, Italy’s FTSE MIB index rose 1.82%, Spain’s IBEX 35 index rose 1.86%.
Lun copper two consecutive negative hit a new low of a week Lun tin fell more than $ 2,000 a day, nearly double the decline on Friday
London base metal futures were mixed on Monday, with some metals continuing to fall.
Lun copper, Lun aluminum and Lun tin fell for two days in a row, Lun copper fell further away from more than nine years high, Lun tin fell more than $ 1,000 on Friday after further expansion, Lun aluminum continued to fall more than two years high. While zinc and lead came out of two-week and three-week lows respectively, nickel ended a two-day losing streak and came out of a two-week low.
LME copper futures closed down $33 at $9,044 per tonne, a new low since Feb. 19 and down more than $500 from the new intraday high set in August 2011 when it rose above $9,600 last Thursday. LME aluminum futures closed down $25 at $2,130 per tonne, a new high since June 18, 2018 last Thursday.
LME tin futures closed down $2,204, or nearly 8.59%, at $23,460 per tonne, a new low since Feb. 11, after closing down $1,176, or 4.38%, on Friday, after rising to $27,500 last Thursday, an intraday high since August 2011.Tom Mulqueen, head of metals trading research at Amalgamated, believes that inventory The surface is weighing on tin prices.
LME zinc futures closed up $24 at $2,816 per tonne, a new low since Feb. 11 last Thursday. LME lead futures closed up $20 at $2,072 per tonne, a new low since Feb. 5 last Thursday. LME nickel futures closed up $105 at $18,682 per tonne, a new low since Feb. 12 last Thursday.
Gold fell for the fifth straight day and hit a new eight-month low. Silver ended a two-game losing streak
New York gold futures fell for the fifth consecutive day, COMEX April gold futures closed down 0.3% at $1723.00 per ounce, a new low for the main contract closing since June 10 last year, but the decline slowed from Friday.
Gold futures closed down 2.6% on Friday, the largest closing decline in the main contract since January 8 of this year. Last week, gold fell 2.73%, the largest single-week decline since the week of November 27, down two weeks in a row and for the second consecutive week fell more than 2%.
New York silver futures ended a two-day losing streak, COMEX May silver futures closed up $0.238, or 0.89%, at $26.678 per ounce on Monday, down more than 4% on Friday, down more than 3% for the week, and gold futures, like two weeks in a row, also hit the biggest weekly decline since late November.
Platinum futures also rebounded after two consecutive losses, NYMEX April platinum futures closed up $6, or 0.5%, at $1191.3/oz, platinum fell more than 8% last week.
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