1, spot gold once fell more than $30 close to the 1690 mark
Spot gold traded in a volatile range of $1,705-1,722 for most of Thursday. Overnight, as Fed Chairman Colin Powell spoke, the yield on the 10-year Treasury note continued to rise above 1.55 percent, while the U.S. index continued to show strength. Gold continued to fall, hitting as low as $1,690.47, more than $30 off the session high, before closing down 0.8 percent at $1,697.10 an ounce. Spot silver narrowly missed the $25 mark and ended down 2.85 percent at $25.33 an ounce. The dollar index against a basket of major currencies ended up 0.71 percent at 91.59.
2. Non-US currencies fell sharply overnight
Non-US currencies fell sharply overnight on the strength of the dollar, with GBP/USD briefly standing above the 1.40 mark but eventually falling below the 1.39 mark. The euro fell as much as 90 points against the dollar overnight.
Oil prices soared, with Brent crude breaking the $67 mark
In the oil market, the decision by Saudi Arabia and OPEC + Allies to continue to control oil supplies shocked the oil market, and oil prices soared. Brent crude rose $4 to $67 on the day and closed up 4.84% at $66.98 a barrel. WTI crude hit as high as $64.83 before settling up 4.85 percent at $64.00 a barrel.
4. Powell: Recent bond market volatility ‘caught my attention’
In the stock market, Powell mentioned that the recent volatility in the bond market brought his attention, but offered no solutions. After his comments, the yield on the 10-year U.S. Treasury note spiked significantly higher, while the U.S. stock market reversed course, with the Dow down 700 points at one point and the Nasdaq down more than 3 percent. At the close, the Dow was down 1.11 percent, the S&P 500 was down 1.28 percent, and the Nasdaq was down 2.11 percent. Disk, technology stocks, popular in the concept stocks, anti-epidemic stocks fell, oil and gas plate bucking the market higher.
5. Major European stock indexes were mixed, with Germany’s DAX30 down 0.18 percent and Italy’s FTSE MIB up 0.19 percent.
A shares and Hong Kong stocks fell sharply
All three major indices in Hong Kong closed lower, with the Hang Seng Index closing down 2.15 percent and the Hang Seng Technology Index closing down 5.84 percent. On the plate, steel plate bucked the trend to move higher, technology stocks, wind power stocks, photovoltaic solar stocks, gold and precious metals plate generally fell.
By the end of the day, the Shanghai Composite Index was down 2.05%, holding the 3,500 mark for the second time in A week. The Shenzhen Component Index was down 3.46%, and the ChiNext Index was down 4.87%. Disk, the main industry plate almost all fell, electrical equipment, liquor, construction machinery, catering tourism and other hot plate early down sharply. Steel stocks continued yesterday’s rally, rare earth, power concept in the session. About 2,800 shares fell in the two cities, with the total turnover rising to 970 billion yuan and the net outflow of northbound funds exceeding 7 billion yuan.
【 International News 】
1. Global gold ETF holdings fell 2% in February
Position report: Open interest in the SPDR Gold Trust, the world’s largest Gold ETF, fell 4.08 tonnes from the previous day to 1,078.3 tonnes. Open interest in the iShares Silver Trust, the world’s largest Silver ETF, fell 202.19 tonnes from the previous day to 18,678.16 tonnes.
2. According to CME’s “Fed Watch”, there is a 100% probability that the Fed will hold rates in the 0% to 0.25% range in March and a 0% probability that the Fed will raise rates by 25 basis points to the 0.25% to 0.50% range. There is a 95.9 per cent chance of keeping rates in the 0% to 0.25 per cent range in April and a 4.1 per cent chance of a 25 basis point increase.
Colin Powell, Fed chairman: The recent volatility in the bond market has caught his attention, but no solution has been offered.
High inflation is a very bad situation, and the Fed will not allow it to happen again. The current policy stance is appropriate and a rate rise will occur when the economy is “almost fully recovered”. Any change in the Fed’s quantitative easing policy will require real progress towards its goals, and it will take some time before it makes any substantial further progress.
4. Initial claims for unemployment benefits rose slightly
Initial claims for state unemployment benefits were 745,000 in the week ended February 27, up slightly from 736,000. The number of Americans applying for unemployment insurance rose slightly last week, analysts said, underscoring the continuing restraints on the labor market recovery.
5. US Congressional Budget Office (CBO) : The US annual budget deficit is projected to average 4.4% of GDP over the 2022-2031 period, compared with 10.3% in 2021.
Goldman Sachs raised its forecast for 10-year Treasury yields to 1.9% by the end of 2021.
CME lowered the initial margin for gold futures
CME cut initial margin requirements for Comex100 gold futures (GC) and gold (enhanced delivery) futures (4GC) to $11,000 a lot from $12,100 a lot, a 9.1% cut. It raised the maintenance margin on copper futures from $5,000 to $5,500, an increase of 10%.
Global gold ETF holdings fell 2% in February
Global gold ETF holdings fell by 84.7 tons, or 2 percent, in February as prices fell and interest rates rose, the WGC said, the third outflow in four months and the seventh-largest decline in holdings on record.
9. Saudi Arabia is in no hurry to cancel its 1 million b/d voluntary crude output cut
OPEC + reached an agreement on the scale of the cuts, which will be extended except for Russia and Kazakhstan, which were allowed to increase output by 130,000 b/d and 20,000 b/d respectively in April. Saudi Arabia decided to maintain its voluntary output cut of 1 million b/d in April, preferring to phase out its voluntary output cut of 1 million b/d starting in May.
10. EIA Gas Report: Total U.S. natural gas inventories for the week ended February 26 were 1,845 Bcf, down 98 Bcf from the previous week, down 277 Bcf or 13.1% from the same period last year, and down 178 Bcf or 8.8% from the 5-year average.
1, non-ferrous metal industry association: this week polysilicon prices continue to maintain the rise.
The price range of domestic single crystal recharging is 105-114,000 yuan/ton, and the average transaction price is 110,800 yuan/ton, up 4.23% month-on-month. The price range of single crystal compact material is 103,000 to 112,000 yuan/ton, and the average transaction price is 108,000 yuan/ton, up 4.45% month-on-month, both hitting new highs in recent years.
2. China Banking and Insurance Regulatory Commission: At the end of the fourth quarter of 2020, the average comprehensive solvency adequacy ratio and the average core solvency adequacy ratio of the 178 insurance companies included in the deliberations of the meeting were 246.3% and 234.3% respectively. The average comprehensive solvency adequacy ratios of life insurance companies, property insurance companies and reinsurance companies were 239.6%, 277.9% and 319.3%, respectively.
3. Thirty-four Chinese mobile game publishers were listed in the Top 100 of mobile gameal BBB1 Publisher Revenue List
Sensor Tower: In February, 34 Chinese mobile game publishers made it into the TOP100 grossing publishers in the global App Store and Google Play rankings, with a total revenue of over $2.24 billion, accounting for 40.2% of the tmobile game00 BBB2 publishers. The top three were QQ Music, netease and Miha You.
4. Strategy Analytics: Despite the severe market challenges caused by the COVID-19 epidemic, global sales of smart speakers exceeded 150 million in 2020, setting a record. New models from Apple, Amazon, Google, Alibaba and Baidu hit the shelves just in time for the most important Christmas sales season, bringing a positive end to a difficult year. Smart screens accounted for 26% of the total smart speaker market in the fourth quarter of 2020, with strong growth driven by the growing availability of models of different sizes and price points.
5. Boeing: COVID-19 could have an impact on expected deliveries over the next decade. With many of the world’s older planes grounded during the epidemic, the airline fleet retirement rate will double to around 5% from the usual 2% to 3%.
6. As the supply gap will ease, the supply of loose news frequently, the main nickel contract in Shanghai fell sharply on Thursday night, down as low as 8.95%. Qingshan Industry and Huayu Co, Zhongwei shares signed a high ice nickel supply agreement, nickel recovery nickel supply.
7. According to Worldometers real-time statistics show that as of 7:20 on March 5, Beijing time, the number of confirmed cases of novel coronavirus worldwide exceeds 11.618 million, reaching 116184481 cases, and the number of deaths exceeds 2.58 million, reaching 2580166 cases. The U.S. will be coronavirus, more than 29.51 million cases of confirmed cases of 29515751 cases, deaths have exceed 533000 cases, 533360 cases.