PRECIOUS-Gold eases on firmer dollar; Fed verdict eyed
· Gold edged lower on Tuesday, pressured by a stronger dollar, as investors awaited policy cues from a two-day U.S. Federal Reserve meeting.
· Spot gold XAU= dropped 0.2% to $1,729.01 per ounce by 1:57 p.m. EDT (1757 GMT). U.S. gold futures GCv1 settled up 0.1% at $1,730.90.
· "Gold should have found a bottom but the big risk is the Fed, and if the Fed does not push back against the bond market, you could see that one day of panic selling (in gold)," said Edward Moya, senior market analyst at OANDA.
Gold could rise with U.S. Treasury yields in the next few months, as a move closer to 2% in yields could derail relentless stock market buying and restore gold's appeal as a safe haven, Moya added.
· The U.S. Federal Open Market Committee's two-day meeting ends on Wednesday.
· The central bank is expected to reiterate its pledge to keep interest rates pinned near zero until the economy reaches full employment. dollar .DXY edged up 0.1%, increasing the cost of holding gold in other currencies.
· While gold is considered a hedge against inflation, higher U.S. Treasury yields have dulled non-interest-bearing bullion's appeal.
· "The near-term technical outlook is very bearish and that's inviting professional traders to short the (gold) market ... It could take some sort of a geopolitical spark to turn this market around," said Kitco Metals senior analyst Jim Wyckoff.
· Palladium XPD= jumped 4.4% to $2,493.25 an ounce, after earlier scaling a one-year high of $2,520.31.
· Given that a palladium shortage is likely in 2021, and above-ground inventories are at their lowest levels since 2003, any shortfall will have a big impact on prices, UBS said in a note. Norilsk Nickel, the world's largest palladium producer, on Tuesday trimmed its 2021 production estimates, citing complications with two Siberian mines. XAG= fell 1.5% to $25.87 an ounce and platinum XPT= eased 0.3% to $1,208.59.
· As Fed gets ready to deliver its interest rate decision, Wells Fargo predicts the 10-year yield could reach 2.25% this year
Don’t rule out a 10-year Treasury Note yield as high as 2.25% this year.
That’s the message from Wells Fargo Securities’ Michael Schumacher, ahead of Wednesday’s Federal Reserve interest rate decision.
“The fiscal stimulus is enormous, and the vaccine rollout seems to be accelerating quite a bit — not just here in the U.S.,” the firm’s head of macro strategy told CNBC’s “Trading Nation” on Tuesday. “A lot of things are coming together to push yields up.”
Yet, Schumacher said his firm doubts Fed Chairman Jerome Powell will show immediate concern.
“He’s been pretty sanguine about the whole increase in yields. We think he’ll maintain that stance tomorrow,” he said. “Our view at Wells Fargo is he will not really try to slow it down.”
Instead, Schumacher said he expects Powell to link rising yields to a vote of confidence in the economic recovery and to indicate it’s a catch-up move for having low inflation for such a long time.
“The world has never seen a coordinated reopening like this, ever. Not even after World War II,” said Schumacher. He said he thinks Powell will signal a willingness to let inflation run above its 2% target for “awhile.”
· Extra $300 unemployment benefits may not arrive until April or later, says Labor Department
States need several weeks to tweak their computer systems and account for the changes, a Labor Department official said Monday in a memo to state unemployment agencies.
· Biden, in Pennsylvania to promote stimulus package, calls aid 'a big deal'
· Biden to hold first news conference on March 25: White House
· Harsh weather temporarily weighs on U.S. retail sales in February
U.S. retail sales fell more than expected moderately in February amid bitterly cold weather across the country, but a rebound is likely as the government disburses another round of pandemic relief money to mostly lower- and middle-income households.
Retail sales dropped by a seasonally adjusted 3.0% last month, the Commerce Department said on Tuesday. Data for January was revised up to show sales rebounding 7.6% instead of 5.3% as previously reported. Economists polled by Reuters had forecast retail dropping 0.5% in February.
· U.S. business inventories rise moderately in January as sales surge
· EU recovery stimulus may prove too little: ECB's Schnabel
The European Union’s 750 billion euro ($893 billion) economic recovery fund may prove too small and what matters now is spending the money as fast as possible, ECB Executive Board member Isabel Schnabel said.
EU governments have until the end of next month to submit detailed plans on how to spend funds from the 27-nation bloc’s landmark stimulus fund.
The European Commission and the governments have yet to agree on structural reforms, while domestic politics in some countries has fuelled concerns of possible delays.
· CORONAVIRUS UPDATE:
COVID-19 infections are still rising in 71 countries.
Global Cases: 121.21M (+437,333)
Global Deaths: 2.68M (+9,546)
No. 1
U.S. Cases: 30.19M (+51,278)
U.S. Deaths: 549,249 (+1,130)
No.2-7
Brazil Cases: 11.60M (+84,124)
India Cases: 11.43M (+28,869)
Russia Cases: 4.40M (+9,393)
UK Cases: 4.26M (+5,294)
France Cases: 4.10M (+29,975)
Italy Cases : 3.25M (+20,396)
No.115
Thailand Cases: 27,154 (+149)
Thailand Deaths: 87
· Global Covid-19 Vaccination
So far 126 countries have begun vaccinating people for the coronavirus and have administered at least 381,263,000 doses of the vaccine.
Gibraltar leads the world and has administered enough vaccine doses for 70% of its population, assuming every person needs two doses.
· More EU nations suspend AstraZeneca shot as regulator says benefits still outweigh the risks
13 countries in the European Union have taken this decision, while a few others have stopped using individual batches of the AstraZeneca vaccine. Austria first decided to suspend the use of a specific batch of AstraZeneca shots last week, following the death of a 49-year old woman who had received this vaccine.
· ‘The damage is done’: Europe’s caution over AstraZeneca vaccine could have far-reaching consequences
· Doctors baffled as countries suspend use of AstraZeneca vaccine over blood clot fears
Health experts say they are disappointed and confused by the flurry of suspensions of the coronavirus vaccine developed by AstraZeneca and the University of Oxford, warning there is not yet enough data to justify these decisions.
Sweden and Latvia on Tuesday joined a fast-growing list of European countries suspending the use of the vaccine as a precautionary measure following reports of blood clots. Germany, France, Italy and Spain on Monday said they would all stop administering the shot.
· France investigates new coronavirus variant detected in Brittany
· French PM says he plans to get an AstraZeneca COVID-19 vaccine
· German COVID-19 cases are growing exponentially again, expert warns
· White House Covid task force member Slavitt is optimistic 89% of U.S. seniors will take Covid vaccine
Roughly 37% of people in the U.S. over the age of 65 have been fully vaccinated, according to the latest data from the Centers for Disease Control and Prevention.
· Mexico expects U.S. response to AstraZeneca vaccine request on Friday
· Russia says its COVID vaccines work on new variants after South Africa cases discovered
· Yellen's latest hire shows U.S. Treasury serious about tax fraud crackdown
· Yellen vows to use 'full power' of U.S. government to tackle climate change
· Yellen underscores importance of financial regulation cooperation in call with EU official
· In his first trip to Asia, Blinken warns China not to use ‘coercion and aggression’ to get its way
From Japanese soil, Secretary of State Antony Blinken slammed China’s sweeping use of “coercion and aggression” on the international stage and warned that the U.S. will mount pushback if necessary.
“China uses coercion and aggression to systematically erode autonomy in Hong Kong, undercut democracy in Taiwan, abuse human rights in Xinjiang and Tibet, and assert maritime claims in the South China Sea that violate international law,” Blinken said at a news conference.
“We’re united in the vision of a free and open Indo-Pacific region, where countries follow the rules, cooperate whenever they can, and resolve their differences peacefully. And in particular, we will push back if necessary when China uses coercion or aggression to get its way,” he added.
· Kim Jong Un’s powerful sister sends warning to Biden administration as Blinken, Austin arrive in Asia
The powerful sister of North Korean leader Kim Jong Un sent an eerie message to the United States on Tuesday, as Biden administration officials arrive for high-level talks in Japan and South Korea.
“We take this opportunity to warn the new U.S. administration trying hard to give off [gun] powder smell in our land,” Kim Yo Jong said in a statement referencing joint U.S. and South Korean military exercises in the region.
“If it [the U.S.] wants to sleep in peace for the coming four years, it had better refrain from causing a stink at its first step,” she added, according to an English translation.
· Russia and Iran tried to interfere with 2020 election, U.S. intelligence agencies say
Russia and Iran both carried out operations to try to interfere in the 2020 presidential election between Joe Biden and Donald Trump, according to a U.S. intelligence report released Tuesday.
The U.S. intelligence community also determined that China did not try to change the outcome of the 2020 races and said there are no indications that foreign actors attempted to alter U.S. ballots or vote tabulation, the report says.
· Britain to expand nuclear warhead stockpile by over 40% as global threats rise
· Alibaba’s browser has been deleted from Chinese app stores
Alibaba’s internet browser has been removed from several app stores in China as the company’s feud with the Chinese government continues.
Android app stores including those operated by Huawei and Xiaomi have blocked downloads or removed Alibaba’s “UC Browser,” according to Huawei and Xiaomi phone owners who spoke to CNBC.
· China’s Xi Jinping says regulations need to close ‘loopholes’ as Beijing cracks down on tech
· Japan exports fall as China, U.S. demand weakens
Ministry of Finance data out on Wednesday showed Japanese exports fell 4.5% year-on-year in February, hurt by decline in U.S.-bound shipments of automobiles.
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