Yazar: Geoffrey Smith
Investing.com – Stocks and commodities are selling while the global risk rally is taking a break. The dollar is recovering while 10-year bond yields are just under 1.50%. Stock markets will continue to see sales. The House of Representatives will vote on the $ 1.9 trillion stimulus package Friday, but the $ 15 federal minimum wage proposal is being lifted.
Here’s what you need to know in financial markets on Friday, February 26th.
1st global risk rally pauses
The exuberant rally in risk assets around the world took a break on Friday. Emerging market currencies, commodities and stocks fell, following the US after the rise in US bond yields on Thursday.
The 10-year bond yield itself is experiencing an unconvincing recovery. With a record low bid rate for Treasury bonds on Thursday, it rose as high as 1.60% after a weak bid. Even though it comes back to 1.48% later, it is still 18 bps higher on a week basis. Five-year yield, more sensitive to the expected change in Fed policy, rose 22bps this week.
All this enlivened the dollar. It rose 0.6% to a one-week high of 90.71 on Thursday.
2. Parliament will vote on the incentive package; Democrats’ minimum wage plan blocked
The US Democratic Party’s efforts to impose a $ 15 hourly minimum wage virtually died.
A Senate official decided on Thursday that the proposal, which is part of the $ 1.9 trillion stimulus package, cannot be passed under the Budget Settlement provisions, which will be allowed to pass by a small majority. The decision leaves the ruling open to Senate Republicans’ obstruction.
It seems unlikely that this move will stop the trend of imposing higher minimum wages among large private employers as they have to compete more for staff. Craig Jelinek, CEO of Costco (NASDAQ 🙂 on Thursday, said he will raise the hourly starting fee to $ 16-17 – Amazon (NASDAQ 🙂 and Target Higher than nouns like (NYSE :).
According to Parliament Majority Leader Steny Hoyer, the House of Representatives will vote on President Biden’s package offer later.
3. The sales in the stock market will continue; Airbnb shows superior performance after a strong appearance
US stock markets will open low again. Technology stocks are still under the greatest selling pressure.
It fell to the lowest in three weeks, down 74 points. It fell by 159 points to see the new all-time high at the beginning of the week and fell 0.4%.
Among the stocks that may be in the limelight is AT&T (NYSE :), which separates DirecTV unit from Salesforce (NYSE :), which presented a weaker-than-expected quarter on Thursday.
Airbnb (NASDAQ :), hurt by the overall technology sale, will recover after predicting strong growth in bookings this year.
4.ARKK in focus on capital outflows, Tesla and Bitcoin issues
Cathie Wood’s five most comprehensive funds in the ARK family saw another $ 500 billion rise on Thursday, according to Bloomberg data.
Wood Tesla (NASDAQ 🙂 has invested heavily in a number of other technology-focused assets that are compatible with the major rally of the past 12 months.
Thus his funds became a barometer for general market enthusiasm for such names. Compensatory pressure can continue on Friday; Shares of the company fell 3.1% after a report that Tesla was the last automaker to have to stop production due to semiconductor shortages worldwide, while Bitcoin fell another 8.8%.
5. Crude oil prices are on the decline
Crude oil prices finally fell as the dollar retreated and market participants narrowed their long positions ahead of the OPEC + meeting.
This meeting to be held on Thursday will determine the production level of the group for April. Speculation is increasing, in particular, that Russia will pressure to reopen the taps.
It was down 2.2% to $ 61.15 and fell 2.0% to $ 64.79.
The week will end with Baker Hughes tower count and CFTC positioning data, following personal consumer spending and Chicago PMI’s last quarterly update.