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1. The WTI crude oil futures contract closed up 1.92% at $57.83 per barrel; the Brent crude oil futures contract rose 1.66% to $61.24 per barrel. Geopolitical tensions disrupted global energy markets. Peace talks between Russia and Ukraine failed to achieve a breakthrough, while Kazakhstans December crude oil production fell by about 6% due to Ukrainian drone attacks disrupting exports, exacerbating market concerns about supply and pushing oil prices higher. 2. Most London base metals fell. LME lead rose 0.73% to $2009.0 per tonne, LME copper rose 0.21% to $12187.5 per tonne, LME nickel fell 0.16% to $15760.0 per tonne, LME zinc fell 0.21% to $3084.0 per tonne, LME aluminum fell 0.34% to $2950.5 per tonne, and LME tin fell 6.55% to $40010.0 per tonne. 3. On Monday, spot silver broke through the $80/ounce mark for the first time in early Asian trading, quickly surging to near $84, a gain of nearly 6%. However, the market then reversed course sharply, with the price falling by more than 11% at one point during the New York session. The silver plunge dragged down other precious metals, with spot palladium plummeting by as much as 17%, spot platinum falling by 15%, and spot gold falling by more than 5%. Domestically, platinum and palladium both hit their daily limit down; Shanghai silver plunged at the end of the session, erasing all of its intraday 10% gains, and further fell by 8.74% in the night session; Shanghai gold closed down nearly 1%, and further fell by 4% in the night session. COMEX gold futures closed down 4.45% at $4350.2/ounce, and COMEX silver futures closed down 7.2% at $71.64/ounce. 4. Domestic futures contracts showed mixed performance, with asphalt, methanol, and low-sulfur fuel oil rising by more than 1%, while coated paper, corn, iron ore, soybean meal, and coking coal saw slight increases. In terms of declines, pulp, benzene, BR rubber, and TSR20 rubber all fell by more than 1%, while PVC, caustic soda, and rubber saw slight decreases. 5. US Treasury yields fell across the board: the 2-year Treasury yield fell 2.45 basis points to 3.450%, the 3-year Treasury yield fell 2.52 basis points to 3.502%, the 5-year Treasury yield fell 3.11 basis points to 3.663%, the 10-year Treasury yield fell 1.95 basis points to 4.108%, and the 30-year Treasury yield fell 2.02 basis points to 4.797%. 6. All three major US stock indexes closed lower: the Dow Jones Industrial Average fell 0.51% to 48,461.93 points, the S&P 500 fell 0.35% to 6,905.74 points, and the Nasdaq Composite fell 0.5% to 23,474.35 points. Goldman Sachs and American Express fell by more than 1%, leading the Dow Jones decline. Profit-taking put pressure on AI-related stocks, with the Wind US Tech Giants Index falling 0.6%, Tesla down over 3%, and Nvidia down over 1%. Most Chinese concept stocks declined, with Dingdong Maicai falling over 7% and Silvercorp Metals & Mining down nearly 7%. European stock indices closed mixed: the German DAX rose 0.05% to 24351.12 points, the French CAC40 rose 0.1% to 8112.02 points, and the UK FTSE 100 fell 0.04% to 9866.53 points. A weaker pound and the Bank of England maintaining a high interest rate of 3.75% weighed on the UK stock market, while a recovery in the Eurozone services PMI supported the German and French stock markets.Ukrainian President Zelensky: The meeting with US President Trump was productive.Faraday Future plans to change its name to Faraday Future Artificial Intelligence Electric Vehicle Company, and will hold a special meeting on February 13th next year.ALEXANDR WANG, Chief AI Officer at Meta: We are pleased to announce that Manus AI has joined Meta to help us build AI products.On December 30th, general-purpose GPU company Tianshu Zhixin announced on the Hong Kong Stock Exchange that it plans to issue 25,431,800 H shares in its Hong Kong listing, priced at HK$144.60 per share. Trading of the H shares is expected to commence on January 8th next year.

Buyers in the USD/CAD currency pair are keeping an eye on the 1.3580s as a key support level

Alina Haynes

Mar 03, 2023 13:59

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The price of USD/CAD is steady as the week comes to an end in Asia; it is currently trading at around 1.3580, down from the day's highs of 1.3601.

 

As Unemployment Claims showed a strong US job market on Thursday, the US dollar gained. The yield on two-year Treasury notes, which is influenced by forecasts for interest rates, consequently rose to values last seen in July 2007. Futures moved marginally higher, with the market setting a maximum fed funds rate of 5.493% in September before it dipped to 5.447% later in the trading session.

 

The Federal Reserve is the center of attention, and Raphael Bostic, president of the Atlanta Fed, stated on Thursday that the central bank is prepared to keep raising rates if inflation does not moderate and that it is still considering how recent, higher-than-expected inflation data may affect Fed policy. The Fed should continue with "constant" quarter-point rate rises, even though the effects of higher rates on the economy might not "bite" in earnest until this spring.

 

The internal economy of Canada, meanwhile, experienced growth that was flat SAAR compared to the 1.6% anticipated and a revised 2.3% (was2.9%) in Q3, which was the lowest since Q2 2021. The yearly growth rate slowed to 2.3% from 2.8% in November as a result of the 0.1% month-over-month decline in GDP in December, compared to the 0.1% anticipated. The next meeting is scheduled for March 8, but according to WIRP, a final 25-bp rise to 4.75% is still factored in for Q3. The BoC has signaled a pause in its increasing cycle, and as a result, the Canadian currency is likely to keep finding it difficult to advance against the USD.