Yazar: Geoffrey Smith
Investing.com – With heavy losses in Asia and Europe, sales in technology stocks are going global. 10-year bond yields hover around 1.47% during the last speech of Fed Chairman Jerome Powell. Unemployment claims will be announced and OPEC will meet with Russia to determine production quotas for April.
Here are the developments that will stimulate the markets on Thursday, March 4:
1. Global technology sales continue; metals were also damaged
The sale of technology stocks continues around the world. New increases in bond yields led to huge losses in the index on Wednesday.
China’s CSI 300 index fell more than 3% on Thursday, while South Korea lost 1.5%. The Euro Stoxx Technology index also declined by about 3%, with chip makers and payment companies experiencing the biggest loss.
However, the losses were not limited to technology. After having experienced a big rally so far this year, base metals have also seen a correction and have seen huge declines. futures fell nearly 5% to below $ 4, while nickel futures lost 7.5%. Both were reflected in declines in mining shares on the London listing.
On the other hand, the US 10-year yield stabilized at around 1.47%.
2.Unemployment claims and Powell will set the sentiment
With growing discomfort about the course of interest rates, the attention will be in Fed Chairman Jerome Powell’s speech. This will be the last speech the Fed’s top officials will give before entering a period of pre-meeting silence.
None of the influential members of the Federal Open Market Operations Committee (FOMC) have sent a real signal of concern about bond yields in their public speeches so far. Instead, it focused on the fundamental weakness in the labor market.
Unemployment applications will be published today. Analysts expect initial jobless claims to rise to 750,000. US factory orders for February will be shared at the same time, while the Challenger Layoffs survey will be published one hour earlier.
3.Sale in stock exchanges will continue
US stocks are on Wednesday’s losses amid new fears that the rise in interest rates will undermine the heroic valuations still ruled by many companies, especially in the tech space.
It dropped 147 points, lost 0.7% and 0.9%. Shares of Tesla, Apple (NASDAQ :), Nvidia (NASDAQ :), Microsoft (NASDAQ 🙂 and AMD fell ahead of the market. Shares of Amazon (NASDAQ 🙂 fell slightly on the news that they were in talks to secure exclusive streaming rights for several NFL games.
Broadcom will present its report after the closing.
4. OPEC + will meet for April quotas
While the tradition of not revealing their intentions before the meeting is broken, the world’s largest oil exporters will meet to set their April production quotas. OPEC’s market monitoring committee preliminary meeting ended without any formal recommendation from ministers.
Analysts argue that an increase in production of less than 1.5 million barrels per day would be bullish for prices, with the claim that global demand is recovering enough to digest extra production. The biggest unknown is how quickly Saudi Arabia will discontinue its unilateral cut of 1 million barrels per day in February and March. This figure is unlikely to be featured in OPEC’s headline announcement
Crude oil prices fell somewhat: 0.3% to $ 61.09 and 0.3% to $ 63.91.
5. Melvin regains less of his losses
Targeted by Reddit users in a historic short-selling squeeze on GameStop (NYSE 🙂 and others, the fund still carries the scars of this challenge from last month.
Citing anonymous sources, CNBC said Melvin Capital shared a 21.7% return for February after losing 53% in January.
Melvin was saved by capital injections from Steven Cohen’s Point 72 investment firm and Ken Griffin’s Citadel. Citadel is the largest buyer of order flow data from online brokerage Robinhood.