1. Asian indices hit 3-month highs
2. Yield of American Treasuries is declining
3. The epidemiological situation in Europe remains tense
On Wednesday, the main Asian indexes showed positive dynamics against the background of general optimism about the prospects for the development of the world economy and the weakening of the dollar. On the eve of the IMF revised its forecast for global GDP for 2021. IMF experts believe that this year the world economy will grow by 6.0% (January forecast + 5.5%). The US economy is expected to grow by 6.4%.
The US dollar remains under pressure amid falling yields on US Treasuries. Now the dollar index is trading in the area of two-week lows, while the yield on 10-year government bonds fell to 1.660% (7-day low). The decline in Treasury yields is taking place against the backdrop of changes in investors' expectations regarding the Fed's future policy.
The epidemiological situation in Europe remains tense. Recently French authorities announced the number of hospitalized patients exceeded 30 thousand people, which is the maximum since November 4, 2020. Germany and other EU countries also continue to record high numbers of new cases of COVID-19 infection.
News to watch out for today:
08:30 GMT. UK: Services PMI
14:00 GMT. Canada: Ivey business activity index (PMI)
14:30 GMT. USA: EIA weekly oil and petroleum products stocks report
18:00 GMT. USA: Minutes of the last FOMC meeting