North American News
US stocks rip higher ahead of the FOMC decision
- Nasdaq leads with a gain over 1.5%
The major US indices ripped to the upside ahead of the Fed’s interest rate decision tomorrow. The gains come despite a big move to the upside in yields today especially in the shorter end. The two year yield rose 25 basis points to 4.1749%. The 10 year yield rose 12 basis points to 3.590%. Normally a rise in yields leads to selling in stocks especially NASDAQ stocks, but not today. Of course rates are still much lower than they were a week or so ago and the Fed is expected to ease hike expectations. The two year yield reached a peak of 5.085%. The 10 year yield reached 4.09% in early March.
The final numbers are showing:
- Dow Industrial Average up 316 points or 0.90% at 32560.60
- S&P index of 51.38 points or 1.30% at 4002.92
- NASDAQ index up 184.58 points or 1.58% at 11860.12
- Russell 2032.75 points or 1.88% at 1777.74
US February existing home sales 4.58m vs 4.20m expected
- US existing home sales for February 2023
- Prior was 4.00m
- Sales change +14.5% vs +5.0% expected
- Prior change -0.7%
- Median price $363,300, down 0.2% from a year earlier
- Inventory at 2.6 months
US sells 20-year bonds with a 0.3 bps tail
- The sale was essentially in-line with estimates
The US Treasury sold $20 billion in 20-year bonds at 3.909% compared to 3.906% in the WI market ahead of the sale. That’s slightly less demand than anticipated but there hasn’t been any additional selling in the bond market since. Note though that yields remain near the highs of the day after a dip midway through trading.
Commodities
Gold falls 2% as the bank-crisis trades fade and eyes focus on the Fed
- Gold down $40 to $1938
The theme of today is retracement as banking worries fade and traders square up ahead of the FOMC.
One of the big winners of the past two weeks is gold and it’s a great example of the theme in markets today. It’s down $40 to $1938 today after touching $2009 yesterday. The $2000 level has served as something of a ceiling since the pandemic with three rips above $2000 sold at different times. Given the price and the history, it’s no surprise that we’re getting a solid retracement.
WTI crude oil futures rise
- Crude oil rises by $1.69 or 2.55%
WTI crude oil futures is settling at $69.33, up $1.69 or 2.55% on the day, marking the largest daily increase since February 7, 2023. Today’s high reached $69.77, while the low extended to $66.90.
Examining the daily chart, the next upside target is the swing low from December 2022, which stands at $70.08. Upon breaking this level, traders will aim for the 38.2% retracement of the recent trading range at $70.69.
EU News
European stock markets start the week with a bang
- Closing changes in the main European markets
Closing changes:
- Stoxx 600 +1.4%
- DAX +1.8%
- French CAC +1.5%
- UK FTSE 100 +1.8%
- Spain IBEX +2.6%
- Italy MIB +2.6%
Other News
Xi tells Putin: Field of our co-operation is constantly growing
- How much more evidence do we need with China and Russia?
- ‘Early harvest’ of our cooperation can be seen, advancing further cooperation
- Both sides should cooperate closely to promote practical cooperation to achieve new goals
At the very least, China is not going to let Russia get routed in Ukraine. The marriage of the world’s largest country with the worlds second-most populous is done. It makes sense on every level and what’s to be done now will be reorienting Russia’s export capacities east and south.
Russia says will continue to reduce production by 500k bpd until the end of June
- Russia deputy PM says the country is close to achieving target level of production cuts
Russia had planned to curb production by 500k bpd in March but hadn’t gotten there yet. But now the deputy PM says they have almost lowered production and that it will stay there through June.
Cryptocurrency News
Binance Coin Price Prediction: Is BNB looking at a rise to $350 or preparing for consolidation?
- Binance Coin price has risen by more than 21% in the span of ten days to trade at $336.
- BNB has managed to test the lower limit of the resistance block of $332 to $357 as a support floor, preparing to breach the upper limit.
- If the market cooldown results in significant corrections, a drawdown in price could drag the altcoin below $300.
Binance Coin price has been adhering to the broader market cues for the last couple of days as the crypto market flourished against the macroeconomic conditions. The bullish narrative noted at the hands of buyers is expected to stick, which could push BNB further, provided this hurdle does not hinder its rise.
Binance Coin price looks to November 2022 highs
Binance Coin price rising by 21.13% in the last ten days has brought the cryptocurrency to trade at $336. The altcoin is currently testing a crucial support level at $332, which also marks the previous year-to-date highs before BNB reached $339 on March 17.
This price level also acts as the lower limit of the resistance block from $332 to $357.
The bullish momentum suggests Binance Coin price could be able to continue its rise as it aims to breach the critical resistance at $357. This price point is important to be flipped into support as doing so would place BNB back at November 2022 highs, the level the altcoin was at before the FTX collapse.
Join Our Whats App Group for all the latest stock market news
https://chat.whatsapp.com/KuCI3obDFfz7J6QI8tK1fX
