Financial News

Stay tuned for our Daily Market Updates – live on your mobile or desktop, 5 days a week, before the European Open.

March 3, 2021

Financial Markets: Choppiness and volatility continue!

ADP numbers disappoint in the United States

ADP numbers disappoint in the United States

US private employers hired less workers than anticipated during the month of February, suggesting that the labour market is struggling to regain strength despite the improving pandemic figures. Private payrolls increased by 117,000 jobs last month, as reported by the ADP National Employment Report on Wednesday. The data for January was revised up in order to show 195,000 jobs added instead of the initially reported 174,004 the month.

While the correlation between ADP and the Non-Farm Payroll figures, the official government figures, tend to be tenuous at best, it can give traders an idea as to whether or not the Non-Farm Payroll figures on Friday will come in as expected, or perhaps miss the mark. Unfortunately, the number of Americans filing initial claims for weekly state unemployment benefits is still far above the 665,000 peak during the Great Recession of 2007-09. Previously, the labour market has begun to show signs of regaining traction after the COVID-19 number started to drop.

OPEC+ considering oil output for April to remain the same

OPEC+ considering oil output for April to remain the same

Recently, there has been quite a bit of speculation as to whether or not OPEC+ would boost production due to higher prices in the crude oil market heading into April. However, sources familiar with the negotiation between oil ministers are suggesting that perhaps the recent production cuts will remain in effect for the month of April, despite the fact that some traders have been expecting crude oil production increases due to an overheated market.

OPEC+ may be watching the US shale production numbers, as higher prices will certainly flood the market with US-based crude oil. Shale production has been a major thorn in the side of OPEC for several years, as they now have to worry about prices being high enough to make shale extraordinarily profitable. Oil ministers from OPEC+ are due to meet on Thursday, and any announcement coming out of that meeting will obviously have a major influence on the supply/demand equation when it comes to the crude oil markets.

Bond yields continue to drop in America

Bond yields continue to drop in America

The US dollar has fallen on Wednesday as investor sentiment improved, and government bond yields have continued to retreat. Commodity-linked currencies are holding onto recent gains, as seen by the Canadian dollar and Australian dollar markets. Global stocks have seen a relatively significant push towards optimism over the last 24 hours, as a jump in government bond yields had played havoc with global portfolios.

The Federal Reserve is more concerned about the speed of the move of bond yields than the actual move itself, as seen by comments coming out of Jerome Powell, as well as several of the regional governors in recent speeches. With that being said, traders are feeling a bit more confident about stepping out into the risk curve, as it appears that the interest rates rising in America are based more upon the idea of the “reflation trade” than any type of economic concern. Nonetheless, if the 10-year yields continue to rise rapidly, that could throw another monkey wrench into trading.

Global Equity Markets

Global Equity Markets

Stock markets were a bit mixed as we continue to see plenty of choppiness around the world. The FTSE 100 has gained 47 basis points, while the Germans and the French essentially went sideways during the day, losing ever so slightly. The Tokyo exchange picked up just a touch over ½%, while the United States is seeing the S&P 500 drop by 56 basis points in midday trading.

Index Change
FTSE100

FTSE100

0.47

DAX

DAX

-0.17

CAC40

CAC40

-0.02

Nikkei 225

Nikkei 225

0.51

S&P 500

S&P 500

-0.56

Currencies

Currencies

Currencies were a little bit more cautious during the trading session as the Euro is slightly negative, while the British pound gained 2/10% for the session. The dollar was up 19 basis points against the Japanese yen, while the Australian dollar lost 2/10% against the greenback as we continue to see the 0.80 level offers significant resistance. As we head towards the Non-Farm Payroll announcement on Friday, traders may be a bit hesitant to put on large positions.

Index Change
EUR/USD

EUR/USD

-0.0852

GBP/USD

GBP/USD

0.2171

USD/JPY

USD/JPY

0.193

AUD/USD

AUD/USD

-0.1987

Commodities

Commodities

Commodity markets were very noisy during the trading session, with everything but crude oil losing. The WTI crude oil market gained a little over 2.5%, as it appears that OPEC+ is set to continue production cuts into the month of April. Gold markets were down 1.62% midday, while silver had been hit even harder, dropping 3%. Platinum also was down almost 3%, and copper, one of the biggest “highflyers” in the commodity space recently, has lost almost 2%.

Index Change
Gold

Gold

-1.62

Silver

Silver

-3.05

WTI Crude

WTI Crude

2.58

Platinum

Platinum

-2.87

Copper

Copper

-1.91

Trade with a Licenced Broker

Trade360.com

Licenced by CySEC

Our EU client portal, operated by CrowdTech Ltd. under CySEC Regulation, license number 202/13.

Trade360.com.au

Licenced by ASIC

Our Australian client portal, operated by Sirius Financial Markets Pty Ltd. under ASIC regulation, license number 439907.

Trade360.finance

Our global client portal, operated by ST Services Ltd.

Search

RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.55% of retail investor accounts lose money when trading CFDs with Trade360. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Learn more about managing risks.