Economic Indicators & Central Banks:
- March came in like the proverbial lion with the NASDAQ composite and the S&P 500 roaring to new all time highs.
- This morning, Asian stock markets were initially boosted by a broader tech rally. Top chipmaker Taiwan Semiconductor Manufacturing Co saw its highest ever level – the company is the main supplier to Apple Inc. and Nvidia Corp. and is considered a key beneficiary of the ongoing AI boom.
- Bonds & US Treasury yields are under pressure at the start of a busy week that includes the ECB decision, Fed Chair Powell’s congressional testimony and China’s National People’s Congress.
- Fedspeak so far were supportive. There had been growing chatter in recent sessions that the strength in the economy could prevent the FOMC from trimming rates at all this year.
- Swiss CPI fell to 1.2% y/y in February, which is further proof that the SNB has brought inflation under control.
- Turkey’s annual CPI swung to a 15-month high, close to 70%.
- OPEC+ output cuts to remain in place until the middle of the year.
- Today: ECB Governing Council member Robert Holzmann & Fed’s Patrick Harker speeches.
Market Trends:
- European futures and Asian stocks higher, with key upcoming events such as Fed Chair Powell’s congressional testimony and China’s National People’s Congress adding to market anticipation.
- The renewed strength in the tech sector resonated across Asia, with Taiwan Semiconductor Manufacturing Co., the world’s leading chipmaker, reaching its all-time high.
- AI and Nvidia continued to underpin investor enthusiasm, boosting the NASDAQ by 1.14% to 16,275, finally besting the 16,057 historic peak from November 2021.
- The S&P500 advanced 0.80% to 5137, also a new high, marking its 15th record of the year, and it has gained in 16 out of the last 18 sessions, the best showing since 1971.
- Nikkei (JPN225) surpassed the 40,000 mark for the first time.
Financial Markets Performance:
- The USDIndex remains under pressure, falling to 103.67 but drifting within a tight range on pressure by lower Treasury yields, as traders waited for crucial economic data for fresh clues on the timing of Federal Reserve interest rate cuts.
- BTCUSD surged, briefly surpassing the $64,000 threshold. Market participants are speculating that the cryptocurrency is poised to exceed its previous record high of nearly $69,000, achieved during the Covid-19 pandemic.
- Gold remains in the green, edging up fractionally to $2084 per ounce.
- USOil is below $80 per barrel after OPEC+ members confirmed that output cuts will be extended through to the middle of the year. The decision was widely expected, but still supported the recent uptrend in prices.
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Andria Pichidi
Market Analyst
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