- Global stock market indices are firmly lower, as U.S. inflation expectations hit their highest level in 13 years at 2.5%, while U.S. 10-year Treasury yields again touch the key 1.5% level. The Japanese Nikkei 225 Index is down by more than 2% in today’s session, while the U.S. NASDAQ 100 tech Index has traded at a 2-month low price.
- In the Forex market, the Japanese yen is the weakest currency, while the U.S. dollar is relatively strong.
- Gold hit a new 6-month low price yesterday in U.S. dollar terms. The precious metal is exhibiting sustained weakness.
- The USD/JPY currency pair has again advanced to make a new multi-month high, this time above 107.00, with odds in favor of further advances over the coming days.
- Bitcoin bulls have failed to push the price above the key resistance level at $51,837 and the price is again trading below $50K. These are bearish signs for Bitcoin over the short term.
- The British government’s annual budget was released yesterday, but it had little impact on the value of the British pound.
- Global coronavirus deaths have fallen sharply over the past five weeks to reach a level 33% lower than the peak. New confirmed cases have fallen to their lowest level since October 2020.
- Total confirmed new coronavirus cases worldwide stand at over 115.7 million with an average case fatality rate of 2.22%.
- The fastest progression in terms of immunizing a population against the coronavirus has been in Israel, which has already administered a first shot of the Pfizer vaccine to 52% of its entire population and a second dose to 39% (which includes more than 88% of over-50s who have either received a shot or recovered from coronavirus). The U.A.E. ranks second, with 22% of its population fully vaccinated. For most of the world, a vaccine remains distant. Progress remains slow in the hard-hit European Union with not a single member state having yet vaccinated even 4% of its population. Denmark and Austria are beginning to explore ways to boost their vaccine provision outside E.U. structures.
- The rate of new coronavirus infections appears to now be increasing most quickly in Austria, Bulgaria, Chile, Cyprus, Estonia, Ethiopia, Finland, Hungary, Italy, Jamaica, Jordan, Kuwait, Malta, Mongolia, Pakistan, Philippines, Serbia, and Somalia.
Forex Today: Stocks Sink as U.S. Bond Yields Rise Again
Adam Lemon
Equity markets are spooked by rising inflation expectations and long-term treasury yields.