This is what you need to know to trade today Tuesday, March 2:
After a Monday of risk appetite, markets are on the defensive Tuesday following a bubble warning from China. The Fed’s rejection of higher yields boosts the dollar and contrasts with the approach of other central banks. Bitcoin is on the rise while gold and oil recede. Speeches by Fed officials are in the spotlight.
Bubble? Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission warned of bubbles in real estate and foreign markets, contributing to a drop in Asian equities and US futures. Tuesday “came after stocks rose on Monday, greeting the new month with optimism.
The US ISM Manufacturing Purchasing Managers Index. it jumped to 60.8 in February, indicating rapid growth. The Prices Paid component jumped above 80, which implies inflationary pressures.
US Ten-Year Yields they have remained contained around 1.40%, which allowed the markets to recover on Monday. Contrary to last week’s dynamics, when high yields weighed on the markets and propelled the dollar, the dollar held on Monday as stocks rose. Thomas Barkin, Chairman of the Richmond branch of the Federal Reserve, dismissed concerns about higher yields on US debt and focused on the fact that 10 million Americans are out of work.
The Governor of the Fed, Lael Brainard, stands out among the speakers on Tuesday, ahead of President Jerome Powell’s address on Thursday. The world’s most powerful central bank stands out among its peers – European Central Bank officials have signaled that they are ready to act to drive yields lower. EUR / USD is under pressure, approaching 1.20. Preliminary figures for the Eurozone Consumer Price Index for February will remain subdued.
The oro extended its fall, changing hands at around $ 1,720 at time of writing. Higher US returns and growing interest in cryptocurrencies have made gold less attractive to some investors.
The Reserve Bank of Australia it kept its interest rates unchanged as expected, a day after intervening in the markets and recovering Australian debt.
Canada publishes Gross Domestic Product figures for the fourth quarter on Tuesday, with a slowdown on the table. WTI crude oil has stabilized around $ 60 ahead of the OPEC + meeting on Thursday. Russia is reportedly seeking an increase in gasoline production, while Saudi Arabia would like to limit production.
The Bitcoin It rose again to around $ 49,000, benefiting from interest from Citibank, among others. Ethereum and XRP lag behind.
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