Markets Overview

  • ASX SPI 200 futures down 0.3% to 7,269.00
  • Dow Average little changed at 33,399.56
  • Aussie down 0.7% to 0.6723 per US$
  • U.S. 10-year yield rose 2.8bps to 3.9812%
  • Australia 3-year bond yield fell 8.9 bps to 3.51%
  • Australia 10-year bond yield fell 14 bps to 3.77%
  • Gold spot down 0.5% to $1,846.46
  • Brent futures up 0.5% to $86.28/bbl

Economic Events

  • 11:30: (AU) Jan. Imports MoM, prior 1%
  • 11:30: (AU) Jan. International Trade Balance, est. A$12.3b, prior A$12.2b
  • 11:30: (AU) Jan. Exports MoM, prior -1%
  • 14:30: (AU) March RBA Cash Rate Target, est. 3.60%, prior 3.35%
  • 16:30: (AU) Feb. Foreign Reserves, prior A$84.5b

The stock market failed to gain traction on speculation that a recent rally has probably gotten overdone as economic risks linger.

It’s not that investors were brimming with confidence at the start of trading, but the S&P 500 managed to climb almost 1% at one point. Those gains, which followed the best week for equities in a month, waned throughout the session — with a rise in Treasury yields bringing an additional layer of pressure. To Michael Wilson at Morgan Stanley, while technical factors could give some support to equities in the near term, the “bear-market rally” wouldn’t last long as fundamentals continue to deteriorate. So basically the recent market action could be seen as the “calm before the storm,” said Mark Hackett, chief of investment research at Nationwide.

Four major events between now and the Federal Reserve’s March 22 decision will be the key catalysts in determining whether the 2023 revival in equities gets derailed or starts rolling again after a February slump.

“Traders are still anticipating a 25 basis-point hike in a few weeks, and investors should prepare for volatility if the jobs read surprises in either direction — especially as some Fed officials have indicated a 50 basis-point hike remains on the table,” said Chris Larkin, managing director at E*Trade from Morgan Stanley.

Other News

Jenson Button has broken a Guinness World Record reflex challenge.

The former Formula 1 champion broke the record for “the most lights extinguished on a Batak wall in 30 seconds” achieving a score of 58 lights extinguished.

He beat the former record holder, Arshia Shahriari from Iran, who held the record of 56 strikes for 4 years, in a challenge set by streaming service NOW, ahead of the Formula 1 season on 3rd March.