Morning Daily

@9AM_03 March, 2021

US index futures are trading green (up to 0.6%), after a negative performance at Wall Street yesterday. SGX Nifty is trading up at +72 indicating a positive opening for benchmark in India. Most of the Asian markets are trading in positive during the early morning trade.

U.S. stocks ended lower on Tuesday, led by technology stocks, a day after major indexes booked their best daily gains in more than three months and global bond yields halted their unsettling rise. Investors are focusing closely on valuations after the stimulus-fueled run up in risk assets.

European stocks flirted with giving up some of the gains made earlier in the week, as lower commodity prices weighed on indexes, but markets came out of Tuesday with broad gains. It opened lower to chase down Asian equities, which slid following a warning from China’s top banking regulator that stocks on Wall Street and elsewhere in the world look like bubbles that will eventually correct.

Asian stocks were steady Wednesday after an overnight retreat on Wall Street amid concerns about excessive investor optimism. Shares outperformed in Australia, where data showed the economy maintained its rapid recovery in the final three months of 2020. Stocks fluctuated in Japan but rose in Hong Kong and China.

Gold futures ended higher Tuesday, on the heels of a five-session decline that pushed prices to their lowest level in over eight months. Gold for April delivery rose $10.60, or 0.6%, to settle at $1,733.60 an ounce, after trading as low as $1,704.60.

Oil futures fell on Tuesday, with U.S. prices settling below the $60 mark for the first time in more than week, as traders bet that Organization of the Petroleum Exporting Countries and its allies will decide later this week to restore some output in April. As we speak, US WTI crude futures are trading lower by 0.56% at $59.99/barrel (@9AM IST), while Brent crude futures are down by 0.42% to $63.03 barrel.

U.S. Treasury yields fell slightly Tuesday as one senior Federal Reserve official suggested the central bank was closely eyeing last week’s bond-market volatility. Bond buyers looked for more explicit pushback from the U.S. central bank on higher yields in government debt markets. The 10-year treasury note fell 3.1 basis points to 1.413%, while the 30-year bond yield edged 0.5 basis point lower to 2.214%.

Institutional Flows – Provisional (March 02, 2021)

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