Asian equities and European equities futures declined following the US stock market. The Asia and Pacific stock index decreased more than anything else in just two weeks. Hong Kong stocks have performed the worst and are prone to deep correction amid the government's decision to temporarily suspend BioNTech SE vaccinations. The fall followed the bearish sentiment in the US on Tuesday – the S&P 500 and Russell 2000 declined sharply.
There is an alarming sentiment that appeared in the market due to the doubts about the progress of the resumption of growth in the global economy. Germany, France, and Italy have extended restrictions related to the pandemic, while other countries are also seeing sharp increases in incidence. The head of WHO called the recent rise in mortality and morbidity "truly alarming trends".
The situation is aggravated by the EU's decision to tighten rules for the export of vaccines. Countries outside the European Union may face serious supply disruptions. Countries from the Persian Gulf to Canada could be hit as the EU is one of the world's largest producers of coronavirus vaccines. The authorities of the European bloc can potentially block all exports to countries that can’t supply the necessary volumes of the vaccine to the EU, and the UK will become the main target. Details will be released later on Wednesday.
US bonds yield continue to decline after Federal Reserve Chairman Jerome Powell reiterated that inflation is short-term and will not be out of control. The Fed continues to calm the market, indicating that the current volume of stimulus will still be needed by the economy.
Against the background of lower expectations for economic growth, the oil market is also under pressure. During the day, Brent and WTI oil lost about 6% in price.
Main market quotes:
S&P 500 (F) 3,911.38 +11.63 (+0.30%)
Dow Jones 32,423.15 -308.05 (-0.94%)
DAX 14,595.70 -66.32 (-0.45%)
FTSE 100 6,690.84 -8.35 (-0.12%)
USD Index 92.543 +0.196 (+0.21%)
- – UK СPI (y/y) (Feb) at 09:00 (GMT+2);
- – Germany Manufacturing PMI (Mar) at 10:30 (GMT+2);
- – Eurozone Manufacturing PMI (Mar) at 11:00 (GMT+2);
- – UK Services PMI (Mar) at 11:30 (GMT+2);
- – US Core Durable Goods Orders (m/m) (Feb) at 14:30 (GMT+2).
by 2021.03.24, We advise you to get acquainted with the daily forecasts for the major currency pairs.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account