citic securities·2026-03-04 03:47Market Overview - Ongoing tensions in the Middle East, particularly regarding the Strait of Hormuz, are causing significant market concerns, leading to a drop in major stock indices globally[3] - The S&P 500 index fell by 0.94% to 6,816.6 points, while the Dow Jones decreased by 0.83% to 48,501.3 points, marking the largest decline in a week[9] - European markets experienced sharp declines, with the Euro Stoxx 600 down 3.1% and the UK FTSE 100 down 2.7%[8] Commodity and Currency Movements - Oil prices saw a near 5% increase, with WTI crude closing at $74.56 per barrel, driven by geopolitical tensions and U.S. assurances of naval protection for oil tankers[26] - Precious metals faced significant declines, with gold prices dropping 4.38% to $5,088.83 per ounce due to a stronger dollar and reduced rate cut expectations[26] - The U.S. dollar index rose by 0.7%, reflecting a general decline in G-10 currencies against the dollar[26] Fixed Income Market - U.S. Treasury yields increased, with the 10-year yield rising to 4.06%, reflecting heightened inflation expectations due to rising oil prices[29] - European sovereign bonds also saw yield increases, with the UK 10-year yield up 9.7 basis points to 4.47%[29] Asia-Pacific Market Dynamics - The Asia-Pacific stock markets were predominantly down, with the South Korean KOSPI index plummeting 7.2% after reopening from a holiday[19] - Japan's Nikkei 225 and Taiwan's stock market fell by 3.1% and 2.2%, respectively, indicating widespread regional market weakness[20] Sector Performance - In the A-share market, the energy sector surged by 7.6%, driven by rising oil prices, while the technology sector fell by 5.0%[16] - In Hong Kong, the energy sector also performed well, with PetroChina shares increasing by nearly 120% amid rising oil prices[11]