Weekly Market Wrap

ASX News Mar 8, 2021 / Reading Time: 2 mins
By Julius Zondag Reading Time: 2 mins

8th of March 2021

Domestic Markets | S&P/ASX200 up 37pts (0.6%)

CBA up $4.89 (6.0%)
FMG down $2.01 (8.3%)

The ASX200 rose 37 points over the course of the week to 6,711 points, with a strong start to the week causing the market to finish higher despite seeing more red days than up days.

Global Markets | Dow Jones up 563pts (1.8%)

S&P 500 up 31pts (0.8%)
Nasdaq down 246pts (1.9%)

Wall Street finished the week heavily in the green as unemployment data showing an unexpectedly strong result as employment growth came close to doubling forecasts. The Nasdaq continued to lag the other major indices, with tech continuing to be heavily impacted with rising Treasury yields.

Europe | Euro Stoxx 50 up 75pts (2.1%)
Although the European markets experienced a positive week, the end of the week saw a sell-off as a jump in inflation rates hit risk appetites, with tech and miners the heaviest hit. European stock valuations continue to remain below pre-COVID levels.

Asia | HSI, CSI, KOSPI, NIKKEI
The Korean KOSPI was the only of the Asian majors to finish in the green, rising 0.4% over the course of the week. China revealed its economic plan for the coming year and the coming 5 years, but the CSI 300 still finished down despite it being largely positive.

Commodities | Gold fell 32.53USD/oz (1.9%)

Silver fell 1.38USD/oz (5.2%)
Copper flat 0.00USD/lbs (0.1%)
Iron Ore flat 0.0USD/t (0.0%)

Precious Metals | Gold, Silver
Gold experienced its third consecutive red week, falling a further 1.9% over the course of the week to $1,698 as a strong US dollar and elevated Treasury yields continued to dampen the attractiveness of precious metals. Silver also lost its lustre as it failed to continue battling against yields, correcting 5.2% to $25.28.

Oil | WTI Crude, Brent
Brent Crude rose 7.7% this week while WTI Crude oil rose 7.5% as OPEC+’s unexpected decision to keep current production cuts in place boosted sentiment. Adding to the positive outlook was Saudi Arabia’s decision to maintain its further voluntary cut of 1 million barrels per day.

Iron Ore
Iron ore had a mixed week, with news that China had consumed more iron than expected in the first two months of the year being offset by the release of China’s 2021 economic plan and their 14th 5-year plan, with emissions targets and steel scrap recycling measures expected to see China demand less iron ore even as steel demand remains relatively strong.

Copper
Copper prices were flat for the week rising by less than a cent over the course of the week. China revealed that manufacturing growth weakened for a third consecutive month, though this was offset by strong long-term sentiment for the red metal due to unprecedented infrastructure and manufacturing stimulus being revealed.