Intuitive Machines Plunges, Yen Strengthens on Inflation Data

Equities

On Monday, the FTSE 100 index saw a slight downturn, closing the session approximately 0.3% lower, largely influenced by a drop in miners due to declining copper and iron ore prices, attributed to a stronger dollar and rising inventories in China, the world's largest consumer of these commodities.

An investigation by the Competition and Markets Authority (CMA) weighed on homebuilding shares. The CMA's scrutiny stems from concerns over fundamental issues within the housebuilding market, which have long hindered the construction of new homes.

Ocado, the online supermarket, saw a significant 7% drop in its stock price, marking the largest decline among FTSE 100 components on the day. This came after reports surfaced about Marks & Spencer withholding a multi-million pound payment to Ocado due to performance issues, highlighting tensions between the partners and adding pressure on Ocado's market performance.

In the United States, the stock market also closed with modest losses. The Dow Jones Industrial Average fell by 0.16%, the S&P 500 by 0.38%, and the Nasdaq Composite by 0.13%. Investors have shifted their focus to upcoming economic data as earnings season winds down.

Intuitive Machines experienced a significant 34.62% drop after disclosing that its spacecraft had tipped over shortly after landing on the lunar surface on Friday, and that they will need to end contact.

The company provided an update on the mission's progress, stating that flight controllers plan to maintain communication with Odysseus until Tuesday morning. This decision will conclude its mission five days following its historic  landing on the moon.

Warren Buffett’s Berkshire Hathaway saw a decrease of 1.94% as investor sentiment was dampened by news of a potential lawsuit against its power company, PacifiCorp, by the US government. Meanwhile, Domino's Pizza enjoyed a 5.85% increase following the announcement of quarterly same-store sales that exceeded Wall Street expectations.

Forex & Commodities

On February 27, 2024, the US dollar fell slightly in anticipation of US economic data releases that could signal the Federal Reserve's timeline for reducing interest rates.

Bitcoin's remarkable ascent to over $57,000, spurred by MicroStrategy Inc's purchase of approximately 3,000 tokens, marked a high not seen since December 2021.

The yen showed strength following Japanese consumer inflation data that surpassed expectations, hinting at the Bank of Japan's continued progress towards ending negative interest rates.

The euro stood unchanged at $1.0850, while the British pound marginally decreased to $1.2680. Meanwhile, the Australian dollar gained slightly, and the New Zealand dollar saw a small decline, with attention turning to the Reserve Bank of New Zealand's upcoming policy meeting, which could impact interest rates due to persistent inflation concerns.