Market Wrap: 9 March 2023

Market Wrap: 9 March 2023

European, US Futures Edge Down; Asia Stocks Mixed: 

  • Dollar and Treasury yields remain elevated on Fed hike bets
  • Powell softens his tone slightly in second day of testimony

European and US equity futures inched lower Thursday while the picture across Asian stock markets was mixed as investors weighed the risk of faster rate hikes.

Shares rose about 1% in Japan, swung from gains to losses in South Korea, crept into positive territory in Hong Kong and were little changed in Australia. The dollar fell slightly while holding within sight of its high for the year and Treasury yields remained elevated, though fractionally lower than Wednesday.

Contracts for the S&P 500 and Nasdaq 100 dipped to intra-session lows following a report that President Joe Biden was proposing tax increases on wealthy investors but the securities retraced the moves on recognition that the US leader has little chance of getting his plans through Congress. 

Softer-than-expected Chinese consumer and producer price figures were seen as positive for the global fight to contain inflation but negative in terms of helping fuel economic growth around the world. 

Investors continue to digest Jerome Powell’s signaling on further rate hikes and the risk of recession that comes with this. While the Federal Reserve chief told lawmakers Wednesday that no decision had been made on the pace of the next move, he reiterated that an acceleration in tightening was still on the table and rates may go higher than anticipated should economic data warrant. 

The comments coincided with another round of US jobs figures that came in on the hot side, bolstering bets that policymakers will remain hawkish.

Japan’s benchmark 10-year bond yield hovered at the 0.5% ceiling set by the Bank of Japan amid pressure on the yield-curve control program, and as Governor Haruhiko Kuroda began his last two-day policy meeting.

The yen strengthened about 0.4% against the dollar after three days of losses. On Wednesday it touched the weakest level since November.

While economists expect little change from the BOJ at the current meeting, traders are on guard given Kuroda’s history of springing surprises.

The offshore yuan weakened slightly while remaining short of the 7 level versus the dollar after China’s report of a slowdown in consumer inflation and a drop in factory prices.

Treasuries rose fractionally in Asia, with the two-year yield ticking down to 5.06%. On Wednesday, yields on shorter-term notes continued to rise faster than longer-maturity peers, with the inversion between the 2- and 10-year yields reaching more than 110 basis points. Wagers solidly tilted toward a half-point move in March rather than a quarter-point. 


Friday’s jobs report will be scrutinized for hints on the outlook for Fed policy, with even just slightly stronger-than-forecast figures likely to trigger more bets for a bigger hike.

Carol Schleif at BMO Family Office said that with so much focus on the jobs market and its implications for this month’s Fed decision, some investors were overlooking part of the big picture.

“It’s keeping the focus so short-term,” she said on Bloomberg Television. “We’re missing the intermediate and longer-term strength in the economy.”

Elsewhere in markets, oil held losses on expectations for higher interest rates, despite an unexpected decline in US crude inventories.

Iron ore slid amid uncertainty about potential moves by Chinese authorities to implement price controls, and as some furnaces ramped up output of steel that uses scrap metal rather than freshly-shipped product.

Gold held near its lowest price this year. 


Trade the global markets with a broker that has integrity, honesty and transparency at its core


Market Wrap: 24 August 2023

Stocks Rally on Tech Optimism, Fed Rate Outlook:  Lackluster US, Europe economic data opens door for rate pause Nvidia’s bullish sales outlook prompts after-hours stock

Read More »

Market Wrap: 15 August 2023

Yuan Falls on PBOC Rate Cuts; Asian Stocks Mixed:  Japan’s economy shows resilience as growth beats estimates Economic woes mount in China as post-pandemic recovery

Read More »

Market Wrap: 11 August 2023

China Tech Pulls Asian Stocks Lower; Dollar Steady:  US core CPI posts smallest back-to-back increases in two years Daly says Fed has ‘more work to

Read More »

Market Wrap: 31 July 2023

Asian Stocks Echo US Rally on Soft Landing Hopes:  Yen declines after unscheduled Bank of Japan bond buying China manufacturing PMI data shows contraction in

Read More »

Market Wrap: 27 July 2023

Stocks Rise, Dollar Slips as Rates Peak in Sight:  ECB will raise rates by another quarter-point, survey shows US data Thursday include GDP, initial jobless

Read More »

This website is owned and operated by the Ox Securities group of companies, which include:
Ox Securities Pty Ltd registered address Level 37, 1 Macquarie Place, Sydney NSW 2000 Australia. AFSL 438402 ACN 163 551 602
Ox Securities Limited (SV) registered address Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St Vincent and the Grenadines
Risk Warning: The information contained on this website is general in nature and does not constitute advice or a recommendation to act upon the information or an offer. The information on this website does not take into account your personal objectives, circumstances, financial situations or needs. You are strongly recommended to seek independent professional advice before opening an account with us and/or acquiring our services/products. Ox Securities Limited (SV) do not accept applications from residents of the United States of America and Australia
Before you decide whether or not to invest any products referred to on this website, being over the counter (OTC) derivatives, it is important for you to read and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS), and Terms and Conditions (T&C), and ensure that you fully understand the risks involved. Fees, charges and commissions apply. OTC derivatives, including margin foreign exchange contracts and contract for differences, are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone. You may incur losses that are substantially greater than your initial investment. You do not own, or have any rights to, the underlying assets which the OTC derivative is referring to. You should only trade with money you can afford to lose. There are also risks associated with online trading including, but not limited to, hardware and/or software failures, and disruptions to communication systems and internet connectivity.

Copyright © OxSecurities 2020. All rights reserved