Market Update 21/03/2025

U.S. Market:

Wall Street experienced a volatile trading session, opening lower before rebounding into positive territory, only to decline again towards the end of the session. By the close, the Nasdaq Index was down 0.3%, the S&P 500 fell 0.2%, and the Dow Jones Industrial Average remained unchanged. The U.S. 10-year Treasury yield held steady at 4.24%, rising 10 basis points to 4.26% during the New York trading session.

Asian Markets:

Asian markets closed lower across the board. The Nikkei Index fell 0.3%, the Shenzhen Index declined 0.9%, and the Hang Seng Index dropped 2.2%. However, Australia’s ASX 200 Index defied the trend, rising 1.2%.

European Markets:

European markets were mixed. The FTSE 100 Index rose 0.4%, while the CAC 40 Index and DAX Index both declined by 0.2%.

Foreign Exchange Market:

The Australian dollar (AUD/USD) dropped 40 pips to a low of 0.6314 following the release of Australia’s employment data. During the New York session, AUD/USD fell further to 0.6271 before rebounding to 0.6290.
The Euro (EUR/USD) fell to 1.0815, but later rebounded to 1.0850.
The U.S. dollar (USD/JPY) reached a high of 148.92 during the New York trading session.

Economic Data:

Australia’s February employment change: -528,000 (expected +30,000)
Labor force participation rate: 66.8% (expected 67.2%)
Unemployment rate: 4.1%, unchanged
U.S. initial jobless claims (week ending March 15): 223,000 (expected 224,000)
March Philadelphia Business Outlook Index: 12.5 (previous 18.1, expected 9.0)
February Leading Economic Index: -0.3% (expected -0.2%)
February existing home sales: 4.26 million (expected 3.95 million)

Monetary Policy:

The Bank of England (BOE) kept its bank rate unchanged at 4.50%, in line with market expectations. The voting result was 8-1. BOE Governor Andrew Bailey stated that interest rates are on a “gradual downward path” but emphasized the need for a “cautious approach” moving forward.