Daily digest market movers: Monday to assess

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  • Goldman Sachs said that Hedge Funds are offloading Tech shares at the fastest pace in seven months, Bloomberg reports. 
  • In London, a big energy conference is set to take place. Traders will be on the lookout for any headlines from major energy ministers and key people about Oil, Gas, and alternative energies. 
  • At 15:00 GMT, New Home Sales data will be published. Sales are expected to increase from 0.664 million to 0.680 million. Housing data last week pointed to some lowdown, which could get confirmed with this release. A slowing housing market could become a concern for the US Federal Reserve as it might be forced to lower its benchmark rates if potential issues in the US housing market spread to the financial system.
  • The US Treasury will have a very busy day this Monday:
    • Near 16:30 GMT, a 3-month and a 6-month bill are due to be released.
    • At 18:00 GMT, a 2-year and a 5-year note will be placed in the market. 
  • Equities are looking bleak this Monday, with profit taking across the board. It looks like investors are reducing their exposure after the all-time highs seen last week and ahead of the key US inflation data later this week.  
  • According to the CME Group’s FedWatch Tool,  expectations for a Fed pause in the March 20 meeting are at 97.5%, while chances of a rate cut stand at 2.5%. 
  • The benchmark 10-year US Treasury Note trades around 4.2%, which is more than 10 basis points lower from the peak last week

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