Markets Overview

  • ASX SPI 200 futures down 0.5% to 7,109.00
  • Dow Average down 1.1% to 31,909.64
  • Aussie up 0.2% to 0.6600 per US$
  • U.S. 10-year yield fell 20.6bps to 3.6987%
  • Australia 3-year bond yield fell 10 bps to 3.34%
  • Australia 10-year bond yield fell 13 bps to 3.58%
  • Gold spot up 2.0% to $1,868.26
  • Brent futures up 1.5% to $82.78/bbl

Economic Events

The dollar weakened slightly against its major counterparts in early Asian trading on Monday as investors assessed efforts to limit the damage from the collapse of Silicon Valley Bank.

US equity futures climbed about 0.2%. Contracts for Asian benchmarks had pointed to declines in Australia and Japan and a tiny increase in Hong Kong when markets around the region open. While traditional haven currencies such as the yen and Swiss franc showed small gains, others like the risk-sensitive Australian dollar also advanced.

Government bond yields fell heavily in Australia and New Zealand, reflecting recent moves in Treasuries, and as traders globally reassess the path of interest rate hikes and the economic cost the tightening cycle has taken already. The problems at SVB Financial Group’s bank were caused in large part by the fallout from higher US interest rates.

In a development that may sooth nerves, Federal Reserve and the Treasury Department are preparing emergency measures to shore up banks and ensure they can meet potential demands by their customers to withdraw money.

Anxiety is also running high ahead of this week’s consumer price index report, especially after Fed Chair Jerome Powell recently emphasized that a move to a faster pace of tightening would be based on the “totality of the data.”

Other News

Citizens of the Chinese province of Liaoning were told to find shelter after it looked like it started to rain worms.

A viral clip showed the area apparently being showered with little worms, which were splattered all over cars.

The video showed residents covering themselves with umbrellas as they go along with their routines and wander past.

While the cause of the slimy creature calamity has yet to be uncovered, the scientific journal Mother Nature Network suggested that the animals were dropped after being swept up by heavy winds.

The periodical also noted that this type of occurrence happens after a storm when insects are caught up in a whirlpool.

The incident is reportedly not uncommon when colder weather hits the Sunshine state. When temperatures drop, the reptiles become stiff and tumble to the ground.