The major indexes surged sharply higher on the back of more good news on vaccines and the expectation of massive stimulus sooner than later. But opening the door for the gains was the more subdued tenor of the Treasury market. In the Asia session, risk aversion returned and stock market sentiment faded. Major indexes quickly pared early gains and headed south, while Treasuries were supported and the US rate dropped back -0.2%. RBA left policy settings unchanged. China's banking regulator highlighted worries about bubbles in overseas financial markets, but also domestic property markets, with suggestions that leverage will be reduced, which only added to concerns about further tightening in China.
GOLD – slumped to lowest in 9 months, as stronger Dollar and elevated US Treasury yields eroded investor appetite for the non-yielding metal. XAGUSD (-2.19% decline). USOil – below $60 .
Today: Calendar focuses on Eurozone inflation data for February, as well as German jobless numbers and retail sales.
