Global Markets Mixed on Feb 23rd, US Yields Rise, Crypto Prices Remain Steady
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%. 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. When bond prices increase, yields decrease, and when bond prices decrease, yields increase.
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. Conversely, Dechra Pharmaceuticals declined 12.5%, and Quilter experienced a decrease of 4.2%. The FTSE 100 rose by 0 Europe's stocks experienced gains, with France's CAC 40 progressing 1.1% and Germany's DAX advancing 1.1%. The European Central Bank has explicitly said it intends to hike rates by another 50 basis points in March.
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. The repricing of yields is now pricing US rates to peak at 5.4% this year, compared with about 5% just a month ago.
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
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