Market players are cautious ahead of a slew of fresh economic data out of the US including the GDP and jobless claims
Wall Street indexes closed lower overnight for the second day in a row despite the 10-year and 30-year Treasury yields were both slightly lower. On the data front, durable goods orders decreased by 1.1% in February, following an increase of 3.5% while the Markit composite PMI fell to 59.1 in March from 59.5. The Markit manufacturing PMI climbed to 59 from 58.6 and the Markit services PMI increased to 60 from 59.8. Meanwhile, Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell reiterated their belief that the U.S. economy will see marked growth in 2021. Still, the Dow Jones Industrial Average closed 0.01% lower, the S&P 500 index fell 0.55%, and the tech-heavy Nasdaq Composite shed 2.01%.
Today in Asia, stocks were mixed-to-positive as risk sentiment started to improve somehow. Still, investor bullishness was capped by worries about rising infections across Europe and potential U.S. tax hikes. Furthermore, Chinese technology shares fell due to concerns they will be de-listed from U.S. bourses after the announcement that the U.S. securities regulator is introducing measures that would kick foreign companies off stock exchanges if they do not comply with U.S. auditing standards. As such, the Shanghai Composite in China closed 0.10% lower while Hong Kong’s Hang Seng slipped 0.07%. Meanwhile, Japan’s Nikkei 225 and South Korea’s Kospi gained 1.14% and 0.40%, respectively.
European equities opened mixed on Thursday, with the pan-European Stoxx 600 falling 0.2% in early trade as investors preparing for a virtual meeting between EU leaders to discuss the epidemiological situation in the region. Also, market players are cautious ahead of a slew of fresh economic data out of the United States including the GDP, jobless claims, and the speech by FOMC’s Clarida.
As risk-off trends have abated, the USD index was slightly off four-month peaks in recent trading. Still, the euro remains under heavy selling pressure, threatening the 1.1800 figure during the European hours against the backdrop of the persistent buying interest surrounding the buck. As the pair has settled below the 200-DMA, downside risks continue to persist in the short term.
