Global Markets Mixed on Feb 23rd, US Yields Rise, Crypto Prices Remain Steady
By It was a mixed day in the global markets on Thursday, February 23rd, 2023. Brent crude remained unchanged at $82.86 per barrel, while WTI crude rose by 0.1% to $76.41 per barrel in the commodities market. At 2:00 Eastern Time, the U.S. crude futures dropped 0.6% to $75.89 per barrel, while the Brent contract decreased 0.7% to $82.28
In the US, the yield on 10-year Treasuries advanced two basis points to 3.96%, while the yield on US 10-year Treasuries was down two basis points to 3.93%.[0] The German 10-year Bund yield increased from 2.464% to 2.494%, a rise of 3 basis points, while the 10-year U.S. Treasury yield elevated from 3.822% to 3.872%, a jump of 5 basis points.[1] When bond prices increase, yields decrease, and when bond prices decrease, yields increase.[1]
On the currency markets, GBP/USD was ranging between resistance at the 50-day SMA at 1.2180, and the support at the 200-day SMA at 1.1935. EUR/GBP was finding resistance at the 50-day SMA at 0.8830 area. USD/JPY was encountering resistance at 2-month highs at 135.35 area, as it looks to edge towards the 200-day SMA at 136.70.
The Stoxx Europe 600 rose 0.8% during the morning session in Europe.[2] Conversely, Dechra Pharmaceuticals declined 12.5%, and Quilter experienced a decrease of 4.2%.[2] The FTSE 100 rose by 0[2] Europe's stocks experienced gains, with France's CAC 40 progressing 1.1% and Germany's DAX advancing 1.1%.[2] The European Central Bank has explicitly said it intends to hike rates by another 50 basis points in March.[3]
In the US, US equity markets have for now been able to shrug off the sharp rise in yields that has occurred since the beginning of the month.[4] The repricing of yields is now pricing US rates to peak at 5.4% this year, compared with about 5% just a month ago.[0]
Finally, in the cryptocurrency markets, Bitcoin was down 0.25%. Ethereum and Ripple were both up around 2%.
0. “Stocks Push Higher After Wall Street’s Dismal Week: Markets Wrap” Yahoo Canada Finance, 27 Feb. 2023, https://ca.finance.yahoo.com/news/asia-stocks-fall-traders-reprice-222921890.html
1. “US Futures Fall, European Stocks Mostly Down as Rate Worries Linger” MarketWatch, 21 Feb. 2023, https://www.marketwatch.com/story/us-futures-fall-european-stocks-mostly-down-as-rate-worries-linger-741460ea
2. “US Futures, European Stocks Rise But Higher Rate Path Worries Return” MarketWatch, 27 Feb. 2023, https://www.marketwatch.com/story/us-futures-european-stocks-rise-but-higher-rate-path-worries-return-7926370b
3. “European markets up 1.2% after worst week of the year; Commerzbank climbs 4.5% after DAX re-entry” CNBC, 27 Feb. 2023, https://www.cnbc.com/2023/02/27/european-markets-live-updates-stocks-data-news-and-earnings.html
4. “Europe set for higher open with US markets out for Presidents Day” CMC Markets, 20 Feb. 2023, https://www.cmcmarkets.com/en/news-and-analysis/europe-set-for-higher-open-with-us-markets-out-for-presidents-day
