Stocks crash as Senate passes new stimulus.

08/03/2021

Monday has been a very bearish day for stocks so far, and US indices were sharply lower during the London session.

Earlier in the day, China’s exports surged in the first two months of the year, up over 60% in dollar terms. 

Additionally, the US Senate passed the 1.9 trillion USD stimulus package, proposed by President Joe Biden earlier this year, over the weekend. However, it looks like this was already priced in, and investors remain scared by higher inflation as US yields rose again. 

The 10-year yield jumped above 1.6% again, and if the Fed does not do something soon, we could see the continuation toward the 2% threshold. 

Higher US yields usually strengthen the greenback, and the EURUSD pair dropped below 1.19 on Monday, while the USDJPY pair advanced above 108. 

In commodities, metals dropped today amid rising US yields and USD, while oil was up for the fourth day. The WTI benchmark traded above 67.50 USD for the first time since October 2018.
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