Tuesday 23rd February 2021: Asian markets mixed as commodities rally.

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Global Markets:

  • Asian Stock Markets : Shanghai Composite down 0.17%, Hang Seng up 1.03%, ASX up 0.86%
  • Commodities : Gold at $1808.05 (-0.02%), Silver at $28.13 (+0.17%), Brent Oil at $65.21 (+1.32%), WTI Oil at $62.45 (+1.22%)
  • Rates : US 10-year yield at 1.379, UK 10-year yield at 0.720, Germany 10-year yield at -0.310

News & Data:

  • (GBP) Claimant Count Change -20.0K vs 13.8K expected
  • (NZD) Retail Sales q/q -2.70% vs -0.50% expected
  • (EUR) German ifo Business Climate 92.4 vs 90.5 expected
  • Spanish Central Bank proposes robust EU deposit guarantee fund
  • New Zealand retail sales hold up in December quarter

Markets Update:

Asian stocks ended mixed on Tuesday as prospects of more U.S. fiscal stimulus offset lingering concerns over an uptick in bond yields and worries over higher inflation affecting valuations.

Mainland Chinese stocks were lower by the close. The Shanghai composite was down 0.2% while the Shenzhen component dipped 0.6%. However, Hong Kong’s Hang Seng index gained 1%. Markets in Japan were closed on Tuesday on account of Emperor’s Birthday.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.088 following an earlier low of 89.943. Cash Treasuries were not traded in Asia with Tokyo shut for holidays, but futures firmed slightly and showed an implied ten-year Treasury yield of 1.34%.

Markets will turn their focus to Federal Reserve Chair Jerome Powell who is delivering his semi-annual testimony on Tuesday. Powell is likely to reiterate a commitment to keeping policy super easy for as long as needed to drive inflation higher, analysts said.

Upcoming Events:

  • 03:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 03:00 PM GMT – (USD) CB Consumer Confidence
  • 05:30 PM GMT – (CAD) BOC Gov Macklem Speaks