In Asian Equity Markets stocks faltered on Tuesday, tracking a retreat on Wall Street as traders bolstered their bets on U.S. rate hikes in 2022 after President Joe Biden picked Federal Reserve Chair Jerome Powell to lead the central bank for a second term. MSCI’s gauge of Asia Pacific stocks outside Japan fell 0.52 percent, while Hong Kong’s Hang Seng Index slid 1 percent. China’s benchmark CSI300 Index pared morning losses to stay just above the red. Australia’s S&P/ASX 200 outperformed, closing up 0.79 percent, boosted by miners and energy stocks. Japanese markets were closed for a public holiday.

In Currency Markets the dollar edged lower Tuesday, handing back some of the previous session’s gains but remained near a new four-and-a-half-year high against the yen after Jerome Powell was nominated for a second term as chairman of the Federal Reserve. Euro rose 0.1 percent to 1.1250, rebounding slightly after falling as low as $1.1226, a new 16-month low. Against the Japanese yen, the dollar fell 0.1 percent to 114.80, having previously climbed to 115.15, its highest since March 2017. Sterling edged slightly higher to $1.3399.

In US Equity Markets the S&P 500 ended lower and the Nasdaq tumbled deep into negative territory on Monday after both earlier hit record highs following the announcement of a second term for Federal Reserve Chair Jerome Powell. The Dow rose 0.05 percent to end at 35,619.25 points, while the S&P 500 lost 0.32 percent to 4,682.94. The Nasdaq Composite fell 1.26 percent to 15,854.76. In extended trade, Zoom Video Communications jumped 6 percent after the video-conferencing company posted quarterly revenue that beat expectations.

In Commodities Markets oil prices rose on Monday, rebounding from recent losses, on reports that OPEC+ could adjust plans to raise oil production if large consuming countries release crude from their reserves or if the coronavirus pandemic dampens demand. Brent crude futures rose 1 percent, to settle at $79.70 a barrel. WTI crude futures rose 1 percent, to settle at $76.75 a barrel. Spot gold fell 2.1 percent to $1,805.30 per ounce. Silver fell 1.9 percent to $24.13 per ounce, platinum lost 1.9 percent to $1,012.10, and palladium fell 5 percent to $1,958.76.

In European Equity Markets stocks ended flat on Monday as Germany’s warning of tighter lockdown restrictions overshadowed gains in Telecom Italia following a $12-billion proposal from U.S. fund KKR to take Italy’s largest phone group private. The pan-European STOXX 600 index finished flat after falling earlier in the day when German Chancellor Angela Merkel said Europe’s biggest economy needed tighter restrictions to control a wave of COVID-19 inflections. Meanwhile, telecom stocks rose 1.8 percent – their best day since March – fuelled by a 30.3 jump in Telecom Italia.

In Bond Markets U.S. Treasury yields rose on Monday after President Joe Biden announced he would nominate Fed Chairman Jerome Powell to a second term while elevating Fed Governor Lael Brainard to vice chair. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 8.5 basis points at 0.590 percent, its highest since early March 2020. The yield on 10-year Treasury notes was up 8.9 basis points to 1.625 percent. The yield on the 30-year Treasury bond was up 6.6 basis points to 1.973 percent.

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