US Session (12/03/2021)

A sharp selloff in large technology companies dragged down stocks on Friday, capping off a week of wild swings in financial markets.

Traders have had a lot to think about in the last few days, from Federal Reserve Chair Jerome Powell's hawkish stance to uncertainty about how the omicron coronavirus outbreak will affect global reopening.

A mixed jobs report in the United States did nothing to avert another bout of intense volatility. The reason for this is that there is a widespread belief that the data will not be game-changers, with policymakers likely to accelerate the tapering of asset purchases in the face of elevated inflation.

The stock market's weekly decline has been extended. Tesla fell about 6.5%, and Facebook parent Meta Platforms approached a bear market after a 19.7% drop from a recent peak. Apple fell after news broke that the phones of a number of US State Department employees had been hacked.

China's companies listed in the United States fell amid plans by ride-hailing giant Didi Global to exit American exchanges and regulators' plans to force foreign firms to open their books or risk delisting.

The US Treasury once again stopped labeling any foreign economies as currency manipulators, while maintaining that Taiwan and Vietnam met all three criteria for the designation.

The US economy and S&P 500 Index of stocks are out of whack — Quartz

Asia Session (12/05/2021)

In Asia stocks and futures showed some stabilization, with investors weighing the latest on the omicron variant and the regulatory outlook for Chinese technology companies. Treasuries reversed some of Friday's gains.

Futures in the US rose, while benchmarks in Japan and Australia fell slightly. An index of Chinese technology stocks fell for the third day in a row in Hong Kong. Shares in mainland China rose following a report that the number of cash banks must keep in reserve may be reduced this month.

On Sunday, China's securities watchdog attempted to allay concerns about Chinese companies withdrawing from American exchanges. Didi global's plans to move its listing from New York to Hong Kong sent the country's stock market tumbling, sparking fears that others would follow.

Treasury yields rose on Friday, reversing Friday's drop that brought the 10-year yield closer to 1.30%.

The focus shifts to the US consumer prices that are expected to rise by the most in decades, putting pressure on the Federal Reserve to tighten policy more quickly.


Europe Session (12/03/2021)

European markets and equity futures in the United States fluctuated on Friday as traders awaited major employment data that might fuel hopes for a faster decrease in Federal Reserve stimulus.

After dip-buyers propelled the s&p 500's greatest gain since mid-October on Thursday, a hint that some of the worst worries about the omicron virus strain are fading, the S&P 500 and Nasdaq 100 futures fluctuated before going down.

The Stoxx Europe 600 index lost its early gains, with drops for miners and banks counteracting a rally in energy stocks. Most Asian benchmarks gained, although a measure of Chinese tech businesses in Hong Kong fell. The intention by ride-hailing giant Didi Global to delist from the US under pressure from Beijing, as well as increased scrutiny of Chinese corporations trading in the US, worried investors.

After Fed policymakers spelled out the case for a speedier withdrawal of policy support amid strong inflation, bond rates crept down, erasing some of Tuesday's rise. The value of the dollar remained stable. Due to a gloomy outlook, crude climbed after opec+ continued with an output hike but allowed the opportunity for swift adjustments.

BoE's Saunders: Delaying rate hikes might result in a more abrupt and harsh policy tightening later. The balance between these concerns, in my opinion, will be a critical element in the December conference.

BoJ: Omicron might be a cause to prolong Covid aid.

ECB's President Lagarde: I feel certain that the ECB will cease buying PEPP in March.

ECB's President Lagarde: More firms are stating that bottlenecks would take until the middle or end of 2022.


Monday FX Option Expiries

EUR/USD: 1.1550 (EU919.5M), 1.1200 (EU719.6M), 1.1250 (EU608.8M)
USD/JPY: 115.10 ($1.11B), 113.70 ($416.7M), 111.30 ($380M)
AUD/USD: 0.7405 (AUD637.4M), 0.7400 (AUD517.6M), 0.7250 (AUD463.6M)
GBP/USD: 1.3500 (GBP394.1M), 1.3750 (GBP351.3M), 1.3700 (GBP309.5M)
USD/BRL: 5.5650 ($300M)