April 3, 2023
United States:
Treasuries Fall as OPEC+ Disrupts Fed-Pivot Wagers: Markets Wrap
Global markets made a shaky start to the second quarter of 2023 as OPEC+’s surprise plan to cut oil production revived concerns of elevated inflation and pushed traders to prune their wagers on a dovish tilt by the Federal Reserve.
Crude-oil futures advanced 6.6%, the most in almost a year, after the oil cartel announced an output reduction of more than 1 million barrels per day. Treasuries fell across the curve, with the policy-sensitive two-year yield jumping 7 basis points. Energy stocks rallied in Europe as well as in the US premarket session. The broader equity markets, however, were muted with the European benchmark little changed and US index futures mostly lower.
Europe:
China’s Yuan Replaces Dollar as Most Traded Currency in Russia
China’s yuan has replaced the US dollar as the most traded currency in Russia, a year after the invasion of Ukraine led to a slew of Western sanctions against Moscow.
The yuan surpassed the dollar in monthly trading volume in February for the first time, and the difference became more pronounced in March, according to data compiled by Bloomberg based on daily transaction reports from the Moscow Exchange. Before the invasion, the yuan’s trading volume on the Russian market was negligible.
Asia:
Japan’s Manufacturer Sentiment Worsens in Support of BOJ Policy
Confidence among Japan’s large manufacturers deteriorated to a two-year low, supporting views that incoming central bank governor Kazuo Ueda will maintain an ultra-easy monetary policy for a while longer.
An index of sentiment among the country’s biggest manufacturers declined to 1 in March from 7, according to the Bank of Japan’s quarterly Tankan report released Monday. The reading worsened for five straight quarters and fell below an economists’ forecast of 3.
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