Markets pause, equities and dollar mixed

Markets pause, equities and dollar mixed

Investors are taking a pause from the recent market volatility. Asian Equity markets are lower on the back of comments by China’s top banking regulator that he’s “very worried” about risks from bubbles in the financial markets. Europe stocks fared much better, mostly in the green, and the S&P 500 in opening slightly lower. The US dollar is broadly stronger and holding near recent highs. Global bond yields edged higher, as have gold and oil prices. Traders await this week’s heavy slate of economic releases, Fed speeches, and Thursday’s OPEC meeting.

“It’s better to burn out, than to fade away.” 

Neil Young
  • FX Rates
    March 2, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar is broadly higher and holding near recent highs. Trading is relatively light as markets await more news to fuel direction. Friday’s US employment data will help provide valuable information about the nation’s labor market recovery. Tomorrow, the Fed publishes its Beige Book, which reports information on current economic conditions by each of the 12 Federal Reserve Bank districts.

    GBP

    The UK pound is little changed, as traders await to hear from Chancellor of the Exchequer Rishi Sunak, who announces the UK’s tax and spending plans. It will be closely watched due to the significant impact from the pandemic.

    EUR

    The euro traded lower for the third day, and briefly breaching $1.20 for the first time since early February. ECB Executive Board member Fabio Panetta said the recent rise in bond yields is “unwelcome and must be resisted.”

    CAD

    The loonie held steady overnight despite a modest increase in commodity prices. This morning’s release of GDP figures for Canada showed lower growth in December (+0.1% MoM) and Q4 (+9.6%) than previous periods, but were marginally better than expectations.

    ASIA/PACIFIC

    Asian equity markets were lower, as were most Asian currencies following comments by China’s top banking regulator that he’s “very worried” about risks from bubbles in the financial markets.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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