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Tech shares find footing, oil slides, bond yields on the rise

alibaba

Asia markets are set to open slightly higher following a positive close in the US markets. The US tech shares stabilize while the US-listed Chinese shares are boosted by the State-backed funds. Globally, the airline's stocks soared amid the optimism towards borders reopening.

The ASX gained 1.07% on Tuesday. The Commonwealth Bank is expected to jump on news of a A$2 billion shares buyback plan. The bank has grown the cash profits by 25%, to A$4.7 billion, raised its dividend to A$1.75 per share, despite a squeeze in the profit margin.

NZX 50 was flat in the first half-hour trading on Wednesday.

US stocks

The US stocks gained despite the bond yields continue to climb as tech shares are stabilizing after the earrings-driven wide swings, while investors are awaiting for the January inflation data due on Thursday.  

The Dow Jones Industrial Average was up 1. 06%, the S&P 500 gained 0.84%, and Nasdaq jumped 1.28%.

The bank stocks continue to rise in the backdrop of rising bond yields, and airlines jumped again as more countries are planning to reopen their borders. The major US airlines all rose between 3%-6%. Energy, however, fell on the sliding oil price as investors are eyeing the US-Iran Nuclear negotiations.

The big techs closed mixed, Microsoft, Apple, and Amazon were all up by 1%-3%, Alphabet rose 0.13%, and Meta Platforms fell on concerns of the EU data transferring regulations, down by 2.12%.  Chipmakers also had a strong session with Advanced Micro Devices rose more than 3%, and Nvidia up more than 1% after the company called off the ARM deal due to regulatory challenges. Tesla shares gained 2% after the EV maker said to develop its own app store to compete with Apple and Android.

The peloton's share price jumped 25% on the announcement to slash 2800 jobs, while the CEO John Foley steps down. 

Elsewhere, the US-listed Chinese tech giants spiked on news of state-backed funs injecting into the local markets. Alibaba jumped 6%, Baidu climbed 4.7%, and JD.com was up 3%.

Treasuries

The 10-year US Treasury yield hit a fresh 2-year high at 1.97% and closed at 1.95 and the 2-year US Treasury yield rose to 1.35%. Investors continue to bet on the Fed to start raising the fund rates in the March meeting.

Commodities

The oil prices paused a multi-month rally on the news of the Iran nuclear negotiation is back on the table. The WTI slid 1.85%, to $89. 63 per barrel. And the Brent fell 1.69%, to $91. 12. The oil prices are still at 8-year highs and on track of the upward trend.

The gold futures rose $6.3 per ounce, to $1,828.1, to test the key resistance at $1830.

Currencies

The US dollar strengthened against most of the other currencies but weakened to GBP, AUD, and NZD. The dollar index was up marginally to 95 58. The US CPI data due this Thursday will be in the focus of currency traders, which will give clues of the Fed’s moves on the rate hike. If inflation flared more than expected, the market might be pricing in a 50-basis-points increase in the March meeting, in turn lifting the dollar again.

Cryptocurrencies

The Cryptocurrencies had little change in Tuesday’s trading session. The bitcoin stabilizes around 50-day moving average at 44,200, and Ethereum traded around 3100. The leading digital tokens are still at the potential bottom reversal phase. 


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