Yazar: Geoffrey Smith
Investing.com – Central banks pull back against bond market bears, lowering bonds. The recovery in Chinese manufacturing is slowing, but that of Europe and Japan is accelerating. ISM survey and consumer spending data will be shared. FDA approved Johnson & Johnson’s (NYSE 🙂 Covid-19 vaccine. Walmart and Zoom Video will focus on the stock markets. And crude oil prices soared after Iran refused to negotiate with the United States and showed that there would be more and more tough times to lift export sanctions.
Here’s what you need to know in financial markets on Monday, March 1.
1.Australia leads in central banks pushing back bond bears
The volatility of the bond market, which dominated the trading last week, weakened. The first concrete sign of central banks pushing back those who raised their bond yields amid high inflation expectations was given.
The Reserve Bank of Australia (RBA) received twice as many long-term bonds as planned in a routine quantitative easing operation following last week’s intervention to keep three-year bond yields at target levels. The European Central Bank (ECB) will also share the details of last week’s bond purchases. This could show how willing the ECB is to avoid what it calls “unnecessary tightening of financial conditions.”
It can offer an idea about the Fed and the developments in the bond market in their speeches. The 10-year yield of the USA fell to 1.43%, while its yield fell to -0.30%.
2. Recovery in China is weakening but Japan and Europe gained momentum; ISM survey will be announced
The economic recovery underlying sales in the bond market appeared to have largely continued in recent business surveys. South Korea shared another strong month while (PMI) climbed to a two-year high.
In most parts of Europe, February PMI data were revised upwards. While its data shared the best reading it had seen since the beginning of 2018, its data was increased to 55.1.
However, China’s reading dropped to a nine-month low. Analysts said these numbers diverged due to the timing of the Lunar New Year holiday, but the monthly decline is for the third time in a row, and the index fell to a nine-month low, pointing to a weakening of the recovery in Chinese manufacturing.
It will be shared with the manufacturing survey.
3.After the parliament accepts the Covid-19 incentive package, the stock markets will open high
US stock markets will open higher on the basis of a calmer bond market. Interest is in the progress with the administration’s $ 1.9 trillion stimulus package.
It increased by 273 points and rose by 1.0% and 1.2%.
Among the stocks that may be in the spotlight is Walmart (NYSE :), which is reported to have hired two senior executives of Goldman Sachs (NYSE 🙂 to step up its plans for its banking operation. The reports may have a cross-reading with consumer banking stocks, given signs of stricter competition.
As the earnings period is almost over, Zoom Video Communications’ quarterly update may be of interest. As the economy prepares to reopen, there has been a recent decline in share price amid fears that the Home-to-Work boom may have seen its peak.
4. FDA approves Johnson & Johnson vaccine
The re-opening process saw new support over the weekend. The Food and Drug Administration (FDA) has approved Johnson & Johnson’s single-dose vaccine for emergency use.
The J&J drug promises to increase the supply of safe and effective vaccines against Covid-19 and the third vaccine to be licensed for emergency use in the USA. Preliminary data reveal that it is highly effective in preventing spread by people who do not show symptoms of the disease as an important route of transmission.
On the other hand, reports revealed that he would rethink the decision not to use the AstraZeneca vaccine above 65 years of age, which slowed down vaccine distribution in Germany.
5. Iran continues crude oil rally, with refusal of talks with US
continued to increase on the basis of widespread risk appetite. Another support for the movement was its rejection of Iran’s offer to negotiate directly with the United States on returning to the 2015 UN-backed, non-nuclear proliferation treaty.
Both Iran and the US are currently violating the agreement. Iran is refining uranium, which analysts say it can be adapted for use in nuclear bombs, and the US imposes sanctions on Iran’s exports of crude oil, which hurt its economy greatly.
US futures rose 1.3% to $ 62.30, while it rose 1.2% to $ 65.21.
Analysts say the rally may be strained with the start of maintenance at Chinese refineries and will slow down crude oil import demand for a while.