ECB meeting is held today - 11.3.2021

[IFC Markets]

Top daily news​

American stock indices rose, and the US dollar depreciated on the back of the $1.9 trillion bailout package approval. Gold rises in price amid lowering US government bond yields. In general, investors fear rising inflation in the US, but in our opinion, this will not be a problem for the markets if economic growth accelerates. Oil doesn't yet respond much to the record growth in inventories in anticipation of the imminent recovery of the American oil refineries.

Forex news​

Currency Pair	Change
EUR USD	+0.18%
GBP USD	+0.09%
USD JPY	+0.21%
AUD USD	+0.47%

On Wednesday, the US dollar index dropped for the second day in a row. Investors fear increased inflation in the future, after the U.S. House of Representatives approved a $1.9 trillion stimulus package. The US inflation data for February 2021 were released yesterday. It rose to 1.7% in annual terms compared to 1.4% in January. Today, the Japanese yen continued to weaken after the publication of weak GDP data for the 4th quarter. Its growth (+11.7% yoy) was lower than expected (+12.8%). An important event today for the currency market may be the ECB's regular meeting and the press conference. No change in the ECB rate (0%) is expected, but some statements can be made regarding the purchase and placement of Eurobonds amidst the recent increase in their yields. Jobless Claims for the week will be released in the US. The outlook is slightly negative.

Stock Market news​

Indices	Change
Dow Jones Index	+1.46%
S&P 500	+0.6%
Nasdaq 100	-0.04%
US Dollar Index	-0.13%

On Wednesday, there was no single trend in the US stock market. The Dow Jones and S&P 500 rallied, while the Nasdaq slipped. Dow Jones managed to update its all-time high. The allocation of a $1.9 trillion coronavirus relief package supports stock prices, but may also weaken the greenback in the event of high inflation. Note that these funds are likely to appear due to the Fed's money issue. This morning, futures on the US stock indexes are traded at a remarkable rate. Against the background of the aid package, market participants expect an increase in demand for shares of the US consumer sector: retail chains, airlines and travel agencies. This morning, Asian stock indices rose thanks to good statistics from China. Shanghai Composite soared nearly 3%. Yesterday, China released positive data on New Yuan Loans for February, and today - on car sales.

Commodity Market news​

Commodities	Change
WTI Crude	+0.82%
Brent Crude Oil	+0.68%
COPPER	+2%

Yesterday, world oil prices rose insignificantly. Earlier, Brent failed to overcome the $70 per barrel psychological resistance level and corrected downward. The Energy Information Administration reported a rapid recovery in oil production in the United States. According to it, last week the production of the U.S. crude reached 10.9 million barrels per day (bvd), compared to 10 million earlier. At the same time, the load of American refineries rose to only 69% from 56%. This low refining rate and a strong production growth led to a massive 13.8 million barrels increase in US oil inventories within a week. This is the record weekly growth since April 10, 2020, when the coronavirus pandemic and strict lockdowns were at their peak. Now market participants expect a rapid recovery of the US oil refineries, so the price of oil remains relatively high.

Gold Market News​

Metals	Change
Gold	+0.8%
Silver/US Dollar	+1.4%

Today, precious metals are rising in price for the third day in a row amid the weakening of the US dollar due to inflationary risks. The decline in the 10-year government bond yields in 3 days to 1.5% per annum from 1.61% became another positive factor for gold.