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Market Review

US:

The stock market went back to its diverging ways Friday, as rate-sensitive techs and other stocks fell while cyclicals and financials climbed. The Nasdaq composite — laden with technology and growth companies — closed with a 0.6% decline. The Dow Jones Industrial Average added 0.9%. The Russell 2000 made a 0.6% increase.

Asia:

Most Asian stocks rose with U.S. equity futures Monday as benchmark Treasury yields steadied in a week set to be dominated by the Federal Reserve policy meeting.

India:

An across-the-board sell-off dragged the benchmark indices around a per cent lower on Friday as sombre global mood hit markets during the second-half of the trading session. US 10-year Treasury yields rose again on Friday, back above 1.6%, and were on track to rise for the seventh straight week. Equity indices snapped their three-day winning streak and settled 0.9% lower. Market is expected to open gap up and likely to witness positive move during the day.

Global Economy:

U.S. producer prices increased strongly in February, leading to the largest annual gain in nearly 2-1/2 years, but considerable slack in the labor market could make it harder for businesses to pass on the higher costs to consumers. Inflation is expected to accelerate in the coming months and exceed the Federal Reserve's 2% target, a flexible average, by April.

Part of the anticipated spike would be the result of price declines early in the pandemic washing out of the calculations. Economists do not expect the strength in inflation will persist beyond the so-called base effects. U.S. consumer sentiment improved in early March to its strongest in a year as COVID-19 cases declined and the pace of vaccinations accelerated. Consumer sentiment index rose to 83.0 in the first half of this month from a final reading of 76.8 in February. Economists polled by Reuters had forecast the index rising to 78.5.

Commodities:

Oil prices edged up on Monday, with Brent drifting near $70 a barrel, propped up by output cuts from major producers and optimism about global economic and fuel demand recovery in the second half of the year. Gold prices gained on Monday as the passage of a U.S. stimulus bill stoked inflation risks, although a resultant bounce in Treasury yields kept gains in check.

Currency:

The U.S. dollar held firm on Monday after bouncing off a one-week low last week, supported by a spike in benchmark Treasury yields to more-than-one-year highs as inflation fears continued to smoulder.

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