Global currency, crude and stock index update

Category:-Metal | 29-Mar-2022 07:57 AM

The dollar hit a six-year high versus the yen after the Bank of Japan moved to contain rising bond yields, while U.S. Treasury yields soared to new multi-year highs, highlighting a divergence between the BOJ and other major central banks.

Treasury 10-year yields vaulted above 2.5% to three-year highs , with the U.S. Federal Reserve expected to deliver a half-point interest rate rise in May as it tackles rising inflation, having kicked off its tightening cycle this month.

Interest rate hike expectations helped lift the dollar to its highest in two weeks against a basket of six major peer currencies, last up 0.313% at 99.158, at 3:20 p.m. Eastern Standard Time (1920 GMT).

Against the yen, the dollar surged as much as 2.5% to its highest level since August 2015 and the biggest one-day rise since March 2020. Yen losses in March surpass 7% and the currency is set for its biggest monthly and quarterly falls since 2016. The dollar was last up 1.34% against the Japanese currency at 123.715 yen.

US Stock futures were flat in overnight trading ahead of Tuesday’s consumer confidence data and a big week for economic data.

Futures on the Dow Jones Industrial Average and S&P 500 were flat, while Nasdaq 100 futures inched 0.1% lower.

During Monday’s regular trading session, the Dow Jones Industrial Average rose 94.65 points or 0.27%. The S&P 500 climbed 0.7%, while the Nasdaq Composite gained 1.31%.

The gains came amid a tech-heavy market rally during regular trading led by shares of Tesla, which rose 8% on news that it will ask shareholders to split its stock to pay dividends to investors.

Oil declined more than 8% at the lows of the day on Monday as concerns over new lockdowns in China and the potential impact on demand sent prices tumbling.

West Texas Intermediate crude futures, the U.S. oil benchmark, slipped 8.25% to trade at $104.50 per barrel. International benchmark Brent crude traded 7.4% lower at $111.61 per barrel.

However, both contracts recovered some losses during afternoon trading on Wall Street. WTI ended the day at $105.96 for a loss of about 7%. Brent settled 6.77% lower at $112.48 per barrel.

Gold retreated on Monday on pressure from higher U.S. Treasury yields and a firmer dollar, while easing supply concerns ahead of Russia-Ukraine peace talks sent autocatalyst palladium tumbling nearly 8%.

Spot gold fell 1.2% to $1,933.12 per ounce by 02:08 p.m. ET (1808 GMT), while U.S. gold futures settled down 0.7% at $1,939.80.

Benchmark 10-year bond yields hit their highest since April 2019 on the day, buoyed by bets of aggressive interest rate hikes by the Federal Reserve to fight soaring inflation.

Although gold is considered an inflation hedge, rising U.S. interest rates increase the opportunity cost of holding non-yielding bullion.

The weakness in gold should, however, be limited because of inflation worries, said Jim Wycoff, senior analyst at Kitco Metals.

The pan-European Stoxx 600 provisionally closed up by 0.3%, with auto shares climbing 1.2% to lead the gains as most sectors and major bourses entered positive territory.

Global markets are watching events in Ukraine closely more than a month after Russia began its invasion of the country.

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