Treasury yields surged set off a worldwide stock market sell-off, Friday Eurasian stock markets fell, MSCI Asia Pacific Index once fell more than 3%, media statistics some Asia-Pacific region’s technology stock index fell more than 4%, both the largest decline since March last year, to the close, the Nikkei 225 fell nearly 4%, China, Hong Kong and Taiwan stock index fell more than 3%, Australia’s stock index fell more than 2%.
U.S. bond prices reversed their losses on Friday, with U.S. bond yields falling back significantly during the U.S. stock market, but yields on both February full month and Eurasian Treasuries rose sharply. The three major U.S. stock indexes had fallen collectively in early trading, but the Nasdaq staged a V-shaped reversal led by a rebound in technology stocks.
The U.S. dollar index was higher during the day on Friday, and commodities fell collectively as a result, with Gold, silver and copper down at least 3% intraday. However, for the full month of February, commodities in general accumulated gains, except for precious metals gold and silver.
Overnight News
In the face of a growing global bond market sell-off, this week a number of central banks have either begun to act or sounded the alarm: the Australian Federal Reserve unexpectedly announced that it would buy A$3 billion of government bonds due in 2023 and 2024; the Bank of Korea pledged to buy up to $6.3 billion of new bonds by the end of June; the Bank of Japan said it was important to keep the overall yield curve stable at low levels; two ECB policy ECB is monitoring bond yields, but has not taken action to control yields; Bank of England officials warned that the Bank of England should not be “too complacent” in moderating price increases.
ECB Executive Committee member Isabel Schnabel said that the ECB may need to increase monetary policy support if the rise in borrowing costs associated with Treasury yields hurts economic growth; if nominal yields on Eurozone Treasuries pick up along with Inflation expectations, this shows that the ECB’s anti-Epidemic stimulus is working and is a welcome sign.
Yannis Stournaras, Governor of the Bank of Greece and member of the ECB Governing Council, publicly called on the ECB to accelerate the pace of bond purchases under the PEPP program launched during the epidemic, saying that there is currently “unnecessary tightening of bond yields” in the market.
Citing officials, the media revealed that at a meeting of G20 finance ministers and central bank officials on Friday, U.S. Treasury Secretary Yellen announced that she withdrew the U.S. safe harbor proposal and no longer opposes global regulations on digital taxes on tech giants like Google, Amazon and Facebook. The media said the U.S. move paved the way for the OECD to adopt a proposal to impose a digital tax on these technology companies in June this year.
The U.S. Commerce Department announced that the personal consumption expenditures (PCE) price index rose 1.5% in January, the largest increase in nearly a year, higher than the expected 1.4% and the previous 1.3%, but still below the Federal Reserve’s inflation target of 2%; the core PCE price index increased 1.5% in January, both higher than expected and unchanged from the previous value, the largest year-over-year increase in four months, still well below 2%.
Johnson & Johnson announced after hours that the division’s candidate New Crown Pneumonia vaccine was unanimously recommended by the U.S. Food and Drug Administration (FDA) panel, VRBPAC, for an Emergency Use Authorization (EUA). This means that significant progress has been made towards the approval of a third new crown vaccine in the United States.
U.S. stocks dive late up or down Energy sector leads S&P decline Tech stocks support Nasdaq rally but still down nearly 5% for the week
The three major U.S. stock index Friday performance is mixed, the morning session when the new daily low had fallen, the Nasdaq Composite Index finally led the rebound, up 1.5% at the beginning of the day, down more than 0.7% when the new daily low, but the decline lasted only about 40 minutes to turn up, the lunchtime gains again expanded to more than 1%, up nearly 1.9% when the new daily high. The S&P 500 index had risen more than 0.4% at the beginning of the session, down about 1% at the new daily low, and turned up at the end of the morning session, up more than 0.6% at the new daily high in the afternoon session. The Dow Jones Industrial Average opened slightly lower, down slightly more than 490 points in the early session when the new daily low, the midday decline once narrowed to more than 100 points.
The end of the short dive in U.S. stocks, the S&P 500 turned down, the Dow fell to expand, the Nasdaq retracted more than half of the gains. Ultimately, the three major U.S. stock index only the Nasdaq closed up, the Nasdaq rose 0.56% to 13,192.34 points, out of the closing trough hit on Thursday since January 29, Thursday closed down 3.52%, the largest closing decline since October 28 last year. The Dow closed down 469.64 points, or 1.50%, at 30,932.37 points, hitting a new closing low since Feb. 3, closing down nearly 560 points, or 1.75%, on Thursday, the largest closing decline since Jan. 29 this year. The S&P 500 closed down 0.48% at 3811.15 points, a new closing low since Feb. 1, and closed down 2.45% on Thursday, the biggest closing loss since Jan. 27.
This week, the Dow ended a three-week streak, the S&P and the Nasdaq fell for two weeks, the Dow fell 1.78%, the S&P fell 2.45%, the largest single-week decline since January 29 week; Nasdaq fell 4.92%, the largest single-week decline since October 30 week last year.
In February, the three major stock indexes were up, the S&P rose 2.6%, the Dow rose 3.17%, both up two months in a row, the bottom of the Nasdaq rose, up 0.93%, up four months in a row.
Value stocks dominated by small-cap index Russell 2000 late retracted most of the gains, closing up 0.04%, to get rid of the trough hit on Thursday since February 3, this week’s cumulative decline of about 2.9%, continuing a single week cumulative decline, but February cumulative increase of 6.14%, for six consecutive months to beat the S&P. The Dow Jones Transportation Average rose more than 10% in February, far ahead of the major stock indexes.
S&P 500 of the 11 major sectors, only three closed up on Friday, telecommunications services rose slightly by 0.03%, information technology and non-essential consumer goods rose by about 0.6%, falling sectors, down more than 2% of energy led the decline, followed by a drop of nearly 2% in finance, utilities and real estate fell more than 1.8%, in addition to a drop of more than 0.8% in health care, other sectors are down more than 1%.
When the Nasdaq turned down in early trading, Nifty, Amazon and many other technology stocks also once turned down. tesla rose nearly 3.6% at the beginning of the session, after turning down had fallen more than 3.3%, the lunchtime gains once expanded to more than 1%, closing down nearly 1%, still in the bear market. FAANMG six major technology stocks only fell more than 1% of Nifty a closed down, Facebook, Microsoft, Amazon closed up more than 1%, Apple rose more than 0.2%, Google parent company Alphabet rose 0.3%.
Affected by the plunge in gold and silver, U.S. stocks gold and silver stocks fell, Paramount Gold (PZG) closed down more than 7%, Pan American Silver (PAAS) fell more than 6%, Barrick Gold (GOLD) fell nearly 4%, gold ETF GLD fell more than 2%, silver ETF SLV fell nearly 3%.
Most of the popular Chinese stocks fell. Among the audio and video and content stocks, Lychee fell nearly 12%, Tiger lost nearly 6%, Beili Beili and Douyu fell over 4%, Weibo and Baidu fell over 3%, and Tencent Music fell over 1%. Among new energy car stocks, Xiaopeng car fell more than 3%, Weilai car fell more than 2%, ideal car fell nearly 2%. Among blockchain stocks, Ninth City fell more than 20%, Yibang International fell more than 7%, and China Network Carrier fell 4%. Among e-commerce stocks, Alibaba fell more than 1%, while Jingdong and Jindo closed slightly higher. For the week, Alibaba fell nearly 10%, Jingdong fell over 11%, Beili Beili and Predo fell 12%, Baidu fell 16%, and Azure fell nearly 17%; Ninth City fell over 60%.
Mining stocks fell more than 4% Pan-European stock indexes hit the largest daily and weekly decline in a month, but rose more than 2% in February
Treasury yields jumped sparking market concerns about higher inflation and interest rates, and the pan-European stock index accelerated its decline as commodity-related resource stocks dragged. The Euro Stoxx 600 index closed down 1.64% at 404.99 points, closing lower for the second day in a row, hitting a new closing low since Feb. 1 and the biggest closing decline since Jan. 29. The stock index fell 2.38% for the week, the largest one-week decline since the week of late January, and rose 2.3% in February, erasing the cumulative decline of 0.8% in January.
Stoke 600 sectors, only up nearly 0.2% on Friday, the auto and parts a closed higher. Declining sectors, down more than 4.2% in mining stocks where basic resources led the decline, followed by a decline of nearly 2.8% in oil and gas, banks also fell more than 2%, in addition to a decline of more than 0.9% in utilities and at least 0.8% decline in health care and chemicals, other sectors are down more than 1%.
Cyclical stocks such as energy and banks benefited from the upward rotation of equity markets in February, with the travel and leisure sector the best performer throughout the month and the banking sector, which benefited from rising bond yields, leading the gains.
Major European stock indices fell on Friday, led by a decline of more than 2% in British stocks, in addition to Western stocks this week were down, German stocks and Italian stocks fell for three weeks and two weeks, respectively, British stocks and French stocks ended a three-week streak of gains, Western stocks rose for four weeks in a row. February stock indices in various countries are up, in addition to Western stocks ended a two-month losing streak, other countries are up for two months.
Friday Germany‘s DAX 30 index closed down 0.67% at 13786.29 points, down 1.48% for the week, up 2.63% in February, down 2.08% in January; France’s CAC 40 index closed down 1.40% at 5703.22 points, down 1.22% for the week, up 5.63% in February, down 2.74% in January; the FTSE 100 index closed down 2.53% at 6483.43 points, down 2.12% for the week, up 1.19% in February and down 0.82% in January; Italy’s FTSE MIB index closed down 0.93% at 22848.58 points, down 1.24% for the week, up 5.92% in February and down 2.97% in January; Spain’s IBEX 35 index closed down 1.12% at 8225.00 points, up 0.9% for the week, up 6% in February, down 3.92% in January.
Global Treasury yields surged in February British and U.S. Treasuries posted the largest monthly increase in four years Australian Treasuries posted the largest monthly increase in 11 years
This week, the yield on Australia’s 10-year government bond climbed nearly 40 basis points in total, the largest one-week increase in 2013, and rose 70 basis points for the month of February, the largest one-month increase in 2009. New Zealand 10-year bond yields rose nearly 77 basis points in February, and Japanese 10-year bond yields rose nearly 10 basis points in February, the largest monthly increase since March last year.
European government bond prices were mixed on Friday. British 10-year benchmark bond yields rose 4 basis points to 0.82% during the day, close to the high since March last year; German bond yields fell 3 basis points to -0.26% during the same period, from the 11-month high set on Thursday. This week, British bond yields rose by more than 12 basis points, German bond yields rose by about 5 basis points.
The 10-year German bund yield rose by about 26 basis points in February, the largest monthly increase in three years.
U.S. 10-year benchmark Treasury yields rose more than 20 basis points to 1.60 above during the day on Thursday, and was below 1.50% for most of the day on Friday. U.S. stocks briefly regained 1.51% at lunchtime, and returned to below 1.41% at the end of the day. U.S. stocks closed at about 1.40%, down about 10 basis points during the day, with an intraday drop of 14 basis points, the largest since March last year.
By late Friday in New York, the yield on the 10-year U.S. bond had risen by nearly 7 basis points cumulatively this week and by about 34 basis points for the full month of February, the largest monthly increase since November 2016. yields on both the 5-year and 30-year U.S. bonds also rose by more than 30 basis points in February.
Dollar index hits nearly three-week high and biggest gain in two months Bitcoin hits biggest weekly drop in 11 months but rises on $10,000 in February
The ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, continued to rally on Friday, further away from the intraday trough set on Thursday when it fell below 89.70 since Jan. 6, and tested 90.90 in the U.S. stock market at midday on Friday, once rising above 90.97 to set a new intraday high since Feb. 8, up more than 0.9 percent during the day, the biggest intraday gain in two months.
U.S. stocks midday, the Bloomberg Dollar Index rose above 1130 points to a new three-week high, up more than 0.6% intraday. The Australian dollar was down 2.0% against the U.S. dollar at 0.7717. The New Zealand dollar was down 1.6% against the U.S. dollar at 0.7251. The U.S. dollar was up 1% against the Canadian dollar at 1.2724. The U.S. dollar rose through 0.91 against the Swiss franc for the first Time since November last year, and is currently up more than 0.6% intraday.
By Friday’s U.S. stock market close, the dollar index was slightly below 90.96, up more than 0.9% intraday, up nearly 0.7% for the week, ending a two-week losing streak, up more than 0.4% in February, up two months in a row, up about 0.7% in January; Bloomberg Dollar Spot Index rose 0.6%, up two days in a row, and had also hit a new high of nearly three weeks intraday.
The offshore yuan (CNH) rebounded on Friday, but still accumulated losses for the week and February. At 5:59 p.m. Beijing time on the 27th, the offshore yuan against the U.S. dollar at 6.4807 yuan, up 85 points from the end of New York on Thursday, the overall intraday trading in the range of 6.5085-6.4650 yuan, down 265 points from the end of New York last Friday week, down 285 points from the end of New York on January 30, giving back more than half of the gains in January, up 508 points in January.
Bitcoin (BTC) in the European shares before the market had fallen below $ 44,200, compared with the early Asian intraday high fell nearly $ 4,000, the European shares on the intraday re 46,000, the U.S. shares once rose above $ 48,000, the U.S. shares closed between 46,700 and 46,800, down more than $ 7,800 compared with Friday’s U.S. shares closed, but nearly $ 13,000 cumulative increase compared with the end of January. This is the fifth consecutive month of cumulative gains.
CoinMarketCap data shows that mainstream cryptocurrencies fell on Friday, with Litecoin (LTC) down 11.1% in the last 24 hours, the worst performance of the day, Ether (ETH) down more than 8.3%, Bitcoin Cash (BCH) down 7.2%, Ripple (XRP) down nearly 7.2%, BTC down 6% and Dogcoin (DOGE) down more than 4.2%.
Many cryptocurrencies have plunged double-digits this week, with BCH down nearly 31.7% in the last seven days, ETH down nearly 25.3%, LTC down nearly 27.3%, XRP down 22.5%, BTC down 14.9%, and DOGE down more than 7.5%.
BTC fell the most in a single week this week since March last year, but led the major cryptocurrencies with a cumulative gain of more than 40% in February.
Gold hits eight-month low and biggest weekly drop in three months Silver falls more than 5% intraday Gold and silver fall in February
Under pressure from a higher dollar, spot gold and New York gold futures extended their losses to more than 3% at midday, with spot silver down more than 4% and New York silver futures down more than 5% at one point.
Finally, COMEX April gold futures closed down for the fourth consecutive day, closing down 2.6% at $1,728.80/oz, a new low for the main contract since June 22 last year, and the largest closing decline for the main contract since January 8 this year.
This week, gold fell 2.73%, refreshing last week’s record since the week of November 27, the largest single-week decline, down two weeks in a row and for the second consecutive week fell more than 2%. February gold futures fell nearly 6.6%, down two months in a row.
New York silver futures fell more than 5% during the day on Friday, and finally COMEX March silver futures closed down $1.235, or 4.47%, at $26.402 per ounce, down 3.13% for the week, the same as gold futures fell for two weeks, also hit the biggest weekly decline since late November, down 0.27% last week. February silver futures fell 1.93%, ending a two-month streak, up 1.9% in January. 1.9%.
NYMEX April platinum futures closed down $46.2, or 3.75%, at $1,185.3 per ounce on Friday, down 8.34% for the week, giving back all of last week’s cumulative gains of 2.7%.
Copper fell more than 3% but February hit the biggest monthly gain in four years, the longest continuous rise in the history of the month, the end of the 16-week streak in February still rose 13%
London base metal futures fell across the board on Friday. The previous six-day streak of copper fell more than $500 from Thursday’s intraday high of more than nine years, and the two-day streak of tin fell more than $1,800 from Thursday’s high of more than nine years. Aluminum fell to a more than two-year high. LON zinc and LON lead hit two-week and three-week lows, respectively, and LON nickel fell for two days to a new two-week low.
Base metals were mixed this week, but all accumulated gains for the entire month of February. Copper rose three weeks in a row, aluminum rose four weeks in a row, while zinc, lead and nickel ended a three-week streak, tin ended a 16-week streak, as of last week has been three weeks in a row since 1989, the longest streak of weeks on record.
February copper and tin are cumulative gains of more than 10%. Copper rose for 11 months in a row, the longest streak in history; lead, nickel and tin rose for two months in a row, aluminum and zinc to end a two-month losing streak.
LME copper futures closed down $336, or 3.57%, at $9,077/ton, up 1.87% for the week, up more than 15.54% in February, the largest monthly gain since November 2016, up 1.16% in January. LME tin futures closed down $1,176, or 4.38%, at $25,664/ton, down 2.1% for the week, up more than 12.66%, up 12% in January.
LME aluminum futures closed down $80 at $2,154/mt, a new high since June 18, 2018 on Thursday, up 1% for the week, up about 8.90% in February and down 0.1% in January. lME zinc futures closed down $98 at $2,792/mt, a new low since Feb. 11, down 3% for the week, up about 8.22% in February and down 6.63% in January.
LME lead futures closed down $106 at $2052/ton, a new low since February 5, down 5.18% for the week, up more than 1.38% in February, up 1.5% in January. LME nickel futures closed down $625 at $18,577/ton, a new low since February 12, down 4.9% for the week, up about 5.01% in February, up 6.49% in January.
U.S. oil fell more than 3% to the largest decline in seven weeks, but four consecutive weeks of gains in February rose nearly 20%
International Crude Oil futures sank Friday as did other commodities.
U.S. WTI crude ended a two-day streak of gains, and U.S. stocks had fallen below $61.40 in midday trading, down more than 3.4 percent for the day.
WTI April crude oil futures closed down $2.03, or 3.19%, at $61.50 per barrel, the lowest closing level in the last four trading days and the biggest drop in the main contract since Nov. 6.
This week, U.S. oil rose 3.78%, erasing last week’s cumulative decline of 0.38%. February full month, U.S. oil rose more than 17.8%, up four months in a row, the largest monthly gain in the last three months, last November rose about 26.70%, the largest monthly gain since May last year.
Brent April crude oil futures fell for two days in a row, falling more than 1.7% during the day when it set a new daily low, closing down $0.75, or 1.12%, at $66.13 per barrel, the largest closing decline since last Friday, Feb. 19. This week’s cumulative rise of 5.12% in the cloth oil, up four weeks in a row, February cumulative rise of more than 18.3%, up four months in a row, up about 27% in November last year.
For the full month of February, the reflationary trade favorable copper and crude oil higher, precious metals gold and silver fell together.
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