A look at the day ahead from Julien Ponthus
Investors face a conjunction of headwinds when bourses open in Europe this morning.
Fiery exchanges between Chinese and U.S. diplomats have hit Chinese blue chips, while the Bank of Japan’s move to tweak its ultra-easy policy sent the Nikkei benchmark lower and government bond yields higher.
Treasury 10-year borrowing costs, set for a seventh straight week of increase, had already hit parts of the U.S. stock markets. The rate-sensitive Nasdaq skidded 3% after 10-year yields surged to early-2020 highs at 1.754%.
The yield has since slipped off those levels but it hasn’t brought much relief to markets.
Investors must adjust now not just to the risk of higher inflation and higher yields but also to worsening news on the pandemic front, despite the European drug regulator backing the AstraZeneca COVID-19 vaccine as safe.
French regions badly hit by the COVID-19 epidemic, including the Ile-de-France region around Paris, are starting a new four-week lockdown while supply delays may force Britain to slow its COVID-19 vaccine rollout.
In India, coronavirus infections at a more than a three-month high have forced the state of Maharashtra to adopt fresh curbs to restrain the spread of the disease.
With fears creeping back on the global recovery, oil prices fell for a sixth day in a row, down nearly 9% during a week which also saw the dollar index making gains and pressuring assets traded in the U.S. currency.
Key developments that should provide more direction to markets on Friday:
- Natwest to buy back $1.5 billion of shares from UK government
- Greensill creditors make $1.4 bln claims to Australia parent
- United Kingdom - Reopening of 1-month, 3-month and 6-month government debt auctions.
- Sweden - Reopening of 4-year government debt auction.
- Japan’s core consumer prices fell 0.4% in February, remaining distant from the BOJ’s goal.
Reporting by Julien Ponthus; editing by Sujata Rao
March 19, 2021 at 03:02PM
https://www.reuters.com/article/markets-europe-view/morning-bid-and-dont-forget-the-virus-idUSL8N2LH1JP
MORNING BID-And don't forget the virus - Reuters
https://news.google.com/search?q=forget&hl=en-US&gl=US&ceid=US:en
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