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Morning Wrap: A muted session due to US market’s absence

stock markets

US stock futures slid, and European markets were little changed on Monday due to the absence of Wall Street on the US Presidents Day holiday.

While the FTSE 100 index notched higher and hit a fresh all-time high, the Euro Stoxx 50 and DAX edged lower. The US dollar fell against most of the other G10 currencies, with the Australian dollar gaining the most amid the RBA’s hawkish tone from last week.

China’s growth-sensitive commodities, including oil and gold futures, were higher, following a strong session in Chinese stock markets as China’s reopening optimism continued to buoy Asian stocks, with the CSI 300 index up 2.45% on Monday. The ASX is set to open lower ahead of BHP’s earnings report.

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Chinese property stocks jumped on new support measures. China announced a pilot programme to promote private investment in the real estate sector, with only institutional investors eligible for the scheme, and investors need to offer no less than 10 million yuan to participate, according to China Securities Regulatory Commission.

Crude oil rebounded from last week’s slump following the Chinese market rally. China’s reopening and upcoming Russian oil production cut sparked supply concerns again. China and India become the biggest buyers of Russia’s exports. With refineries ready to recover their capacities in China, the demand outlook has been considerably improved.

Cryptocurrencies continued to outperform other asset classes. Both bitcoin and ethereum bounced off their session lows and stayed at six-month high levels, despite more regulatory actions set to be taken by the US SEC. The SEC ordered Paxos to stop issuing Binance stablecoin BUSD, which implies a $137 billion market. 

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