OPEC+ to gradually increase their output over the next three months
US stocks saw another record session overnight, as investors cheered Biden’s plan, strong economic data, and further downside correction in US Treasury yields. US Markit manufacturing PMI rose to 59.1 in March from 58.6 in February. As such, the S&P 500 index gained 1.18%, finishing above 4,000 for the first time. The Dow Jones Industrial Average added 0.52% and the Nasdaq Composite rallied 1.76%.
Asian stocks posted solid gains on Friday while trading volumes were below average due to holidays. As Treasuries rebounded, 10-year yields fell back below 1.7%, adding to investor optimism. Japan’s Nikkei 225 rose 1.58%, the Shanghai Composite edged 0.52% higher, while South Korea’s Kospi gained 0.82%. Markets in Hong Kong and Australia were closed for the holiday. Now, market players shift focus to the upcoming U.S. jobs report, which could bring some volatility in a holiday-shortened trading session.
Meanwhile, the dollar remains under some selling pressure as Treasury yields continue to retreat while risk-on sentiment dominates global financial markets. Still, the EURUSD pair still lacks upside momentum to overcome the 1.1800 barrier, staying around 1.1780 following yesterday’s spike. The recovery potential surrounding the common currency remains limited due to a slower vaccine rollout and rising virus cases in several European countries.
In other markets, oil prices are steady on Friday following a rally witnessed yesterday amid the OPEC+ decision to gradually increase their output over the next three months. The group will increase its output by 350,000 barrels per day next month, another 350,000 barrels per day in June, and roughly 440,000 barrels per day in July. Brent crude briefly exceeded the $65 figure before retreating to the current levels around $64.60. The 20-DMA continues to act as the key immediate resistance in the $65.50 area.
