Marcus Today Pre-Market Podcast – Wednesday 8th March

The Dow closed down 575 points (-1.72%) as markets fell on Powell’s Speech. S&P 500 down 1.53%. NASDAQ down 1.25%. In Europe, STOXX 600 -0.77% FTSE -0.13% CAC -0.46% DAX -0.6%.  US Banks taking a beating on the back of Powell's Speech, Wells Fargo down 4.68% and Bank of America down 3.2%.

The ASX is set to open lower as the US central bank is expected to lift rates higher and potentially at a faster pace after Powell repeated his hawkish stance. ASX 200 Futures are down 60 points (-0.82%) and the AUD has dropped 2.2% to below US66¢. The drop in the currency reflects the prospect of a further widening yield gap between US and Australian government bonds as US rates.

• The Aussie dollar falls by almost 2% down 1.99% to 65.87c, hitting a four-month low.
• Gold plunged 1.67% overnight while the USD Index strengthened up 1.21% after Fed Chair Powell indicated rate hikes could come at a faster pace.
• Base metals are all down Copper fell 2%, pressured by weak import data from China and easing tensions in Peru. Aluminium fell 1.66%, Nickel -1.59%, Zinc -2.9%, Lead -1.49% and Tin -0.69%.
• Crude oil was punished overnight, with Brent down 3.61% and WTI down 3.66% as Powell’s comments triggered a selloff across risky assets. Oil was already under pressure after China’s lower-than-expected GDP forecast, and China’s reopening didn’t spur demand as initially thought.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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