Stock market
The Nasdaq index closed lower for the second day in a row on Tuesday, while the S & P 500 closed higher, and higher Treasury yields prompted investors to sell Tesla, Inc. and other large technology stocks to buy stocks with lower valuations. The Dow Jones industrial average rose 0.55% to 35813.8, while the s & p 500 rose 0.17% to 4690.7. The Nasdaq index fell 0.5% to 15775.14.
European stocks fell to their lowest level in three weeks, their biggest one-day fall in nearly two months, as the backlash raised concerns about tightening restrictions and energy and miners climbed on higher commodity prices. The pan-European STOXX 600index fell 1.3 per cent, while only oil and gas stocks and basic resources stocks rose. Germany's DAX index closed down 1.11%. France's CAC-40 index closed 0.85% lower, while the FTSE index of British stocks closed 0.15% higher.
Foreign exchange market
The dollar index remained near a 16-month high after Federal Reserve Chairman Colin Powell was nominated for re-election, boosting expectations that the United States would raise interest rates in 2022. The euro rebounded from a 16-month low thanks to better-than-expected growth in corporate activity in the region. The dollar index changed little on the day, at 96.461. The euro rose 0.16% against the dollar to $1.1251. The dollar hit a four-and-a-half-year high of 115.08 yen. The US dollar hit a seven-week high of C $1.2744 against the Canadian dollar. The Turkish lira fell 15% against the dollar, the second worst performance in history.
Click here to see the foreign exchange ETF with the largest capital inflows in the most recent week.
Bond market
U.S. Treasury yields edged higher in volatile trading as investors prepared the Federal Reserve to fight inflation more aggressively after President Joe Biden nominated Powell for re-election. The yield on the 10-year note climbed 5.7 basis points to 1.682%, the highest in a week and less than 10 basis points below the year's high hit in March. The yield on the 30-year note climbed 6.2 basis points to 2.040%.
Eurozone bond yields jumped as investors stepped up their bets on an interest rate rise by the European Central Bank next year as central bank policy makers became wary of upward inflation risks. The yield on German 10-year bonds rose 6.5 basis points to minus 0.23 per cent, the highest in a week. The yield spread on 30-year Italian / German bonds widened to the widest since November 2020, close to 180 basis points.
Oil market
Brent crude rose to an one-week high after the US and other consumers released tens of millions of barrels of oil from reserves in an attempt to cool the market less than some had expected. Brent crude futures rose $2.61, or 3.3%, to settle at $82.31 a barrel, while US crude oil futures rose $1.75, or 2.3%, to settle at $78.50 a barrel.
Metal market
Gold fell about 1 per cent to its lowest level in nearly three weeks, as Mr Powell's nomination for re-election as fed chairman heightened bets on faster interest rate hikes, boosting yields on the dollar and Treasuries. Spot gold fell 0.8 per cent to $1789.73 an ounce. Us gold futures settled down 1.3% at $1783.8 an ounce. Platinum fell 4.2 per cent to $969.06 an ounce, while palladium fell 4.4 per cent to $1868.09 an ounce.
Copper prices fell as the dollar strengthened after Federal Reserve Chairman Colin Powell was nominated for re-election, strengthening investors' expectations of an interest rate hike in 2022. 1730 GMT, benchmark copper on the London Metal Exchange (LME) fell slightly to $9726 a tonne, ending three consecutive days of gains.
Click here to check the flow of silver ETF ishares (SLV), an exchange-traded fund that holds physical silver. Click here to check the flow of SPDR Gold Shares (GLD), an exchange-traded fund that holds physical gold. Click here to see the gold ETF with the largest capital inflows in the last month. (organize the self-Reuters Financial Morning Post)