•Oil prices rose to their highest level since the beginning of 2020 amid expectations for a recovery in demand.
• Bond yields jumped to fresh highs as US indices struggle and gold continues its slump.
• Federal Reserve Chairman Jerome Powell told Congress that he is in no rush to raise interest rates as the US economy gradually heals from the Covid-19 pandemic.
For your diary
Monday 1st March
China Caixin Manufacturing PMI
Euro area and UK Final Manufacturing PMI
Canada Manufacturing PMI
US ISM Manufacturing PMI
Tuesday 2nd March
Australia Cash Rate and RBA rate Statement
Canada GDP (Monthly)
New Zealand GDT Price Index
Wednesday 3rd March
Australia GDP (Quarterly)
China Caixin Services PMI
Euro area, UK Final Services PMI
US ADP NON-farm Employment Change
US ISM Services PMI
Crude Oil Inventories
RBNZ Gov Orr Speaks
Thursday 4th March
OPEC-JMMC Meetings
US Factory Orders (Monthly)
US Unemployment Claims
Friday 5th March
Canada Trade Balance
US Average Hourly Earnings
US Non-Farm Employment Change
US Unemployment Rate
US Trade Balance
Canada Ivey PMI
Products to watch
Nasdaq 100 Index (UT100)
All three of the major US indices have been exposed to selling pressure due to the bond yield surge. The Nasdaq 100 index suffered the most, dropping as low as 12800. Technically, the tech index closed below the 100-day moving averages and sellers will be watching out for a breach of the support at 12600. Failure to break through could give the buyers control, targeting 13000.
EURUSD
Traders will be monitoring the US dollar’s performance amid a ‘risk-off’ environment and elevated US bond yields. Last week, the EURUSD edged higher to $1.2240 but retraced back during Friday’s session. Support level below 1.2080 awaits sellers at 1.2000, while short-term resistance at 1.2150 (early February’s peak) will be a challenge for the buyers and price stability above this resistance level the pair could rally to the upside.
Heads up
Earnings season continues
Earnings week continues in the US with a number of companies expected to announce their results.
NIO will announce its earnings on Monday after market open, a report which could soothe investor anxiety over the latest tech shares sell-off. Zoom will also report its full-year earnings on Monday, and it expects its revenue to rise by 314% and its adjusted earnings to increase by 726%-731%.
The following list is our top picks for next week’s earnings:
Monday, 1st March: NIO, Zoom and Petrolera
Tuesday, 2nd March: Taylor and Target
Wednesday, 3rd March: MarvellTech
Thursday, 4th March: Broadcom, Costco, Kroger and Lufthansa
Friday, 5th March: Fitbit
Corporate Action Ahead
Here are this week’s big dividend announcements, with their forecasts:
Monday: Goldman Sachs group with cash dividends of $1.25
Monday: McKesson Corp Holding with cash dividends of $0.42
Tuesday: Electronic Arts Inc with cash dividends of $0.17
Wednesday: Allstate Corp with cash dividends of $0.81
Wednesday: QUALCOMM Inc with cash dividends of $0.65
Thursday: PepsiCo Inc with cash dividends of $1.0225
Thursday: Kimberly-Clark Corp with cash dividends of $1.14
Friday: FedEx Corp with cash dividends of $0.65
RBA rate, OPEC Meetings, and More
A busy economic calendar approaches as there is no change expected at the Reserve Bank of Australia, according to the consensus, where the policy rate is expected to remain at a historic low of 0.10% for some time to come.
The Euro area, UK and the US all report their manufacturing and services PMI. All three major countries had better than expected readings last month, showing levels above the 50 mark, which indicates a growth in the sector.
The OPEC-JMMC Meetings will hold some key data for oil traders, especially after the latest rise in oil prices, because oil production quotas for OPEC member states and certain non-voting observers are set during the session. These quotas can have a strong impact on the global supply.
