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Record Highs For Dow Jones And DAX Despite Archegos Situation, Rising Bond Yields

Published 30/03/2021, 10:43
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Though Archegos uncertainties are still hanging over the markets, European investors felt settled enough to push the region’s indices higher on Tuesday.

The FTSE was one of the stronger performers after the bell. With its key mining, oil and banking stocks all moving in the right direction, the index added 0.7%, lifting to a 12-day high of 6,785.

Climbing 0.7%, the CAC was also at a 12-day peak, re-crossing 6,060, while a 0.8% rise for the IBEX 35 put it at an 11-day high.

Beating them all was the DAX. While its gains were a tad smaller, that 0.6% increase sent the German index past 14,900 for the first time in its history. If all goes well in the next 48-hours, it could close out March above 15,000.

The Dow Jones finds itself in a similar position to the DAX. For the 17th time in 2021, the Dow last night closed at a record high, wrapping the session up at 33,171.

At that price, Tuesday’s prospective 0.3% rise is enough to push it to 33,240, cementing a 2,100-point climb since the start of the month.

There are dangers lurking to undermine these month-end gains. As occurred when February came to a close, bond yields are on the rise. And though the markets have broadly made their peace with that in recent weeks, it could still cause a record high-imperilling wobble.

Similarly, just because markets appear to have moved on this morning, doesn’t mean the dust has settled on Archego Capital’s collapse. That situation could still have some nasty surprises up its sleeve.

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