Negativity ran rampant throughout the equity market as we saw a big selloff in Nasdaq and the S&P while the Dow declined it was not as severe as the decline in the Nasdaq. The major driver behind the selloff was inflationary fears pending CPI data set to be released on Wednesday as the market is preparing for the data to come out weaker than expected following last week's unexpected increase in unemployment. The negativity carried over to the European equities market as we saw a sharp decline in the Dax and FTSE that carried over into the Asian session.
Gold held firm following the strong push it got from the weakened Dollar on Friday as it closed positive holding last week’s close of 1830. Silver breached $27.70 for the first time since February before selling off and closing the day negatively. Brent remains range bound for the last couple of days as its holding above the $67.70 level not quite breaching through $69.50 following the strong push that we got prior to unemployment data that was released.
The crypto market was similarly directionless as Ethereum closed near its weekly open pending the anticipated inflation data that is set to be released. Bitcoin closed the day negative following a strong push it made to get over 60 000 falling just short and closing the day out on 55 170.
Prior to the European open USD, NZD and CAD strength came into the market, while GBP and CHF weakened against the major currencies prior to Gov Bailey speech later this afternoon. Keep an eye out for Australia’s Annual Budget Release as well as BOE Gov Bailey speech that would put focus on interest rates in a discussion today.
11:30am - Annual Budget Release (AUD)
4:30pm - BOE Gov Bailey Speaks (GBP)
Participation in a panel discussion about Secured Overnight Rate, term rates and
Loan market developments by Alternative Reference Rates Committee.