- The focus was on equity markets after last week’s turmoil driven by fears over rising bond yields (yields rise as central banks slowly retreat from the era of easy money). In Asia, Seoul’s Kospi was up 0.9 per cent. Hong Kong’s Hang Seng index ended down 0.2 per cent. In mainland China, the CSI 300 index of major Shanghai and Shenzhen stocks advanced 1.3 per cent. Japanese markets were closed for National Foundation Day.
- The pan-European Stoxx 600 index rose 1.2 per cent, with the Xetra Dax in Frankfurt gaining 1.5 per cent and the FTSE 100 in London climbing 1.2 per cent.
- Wall Street edged higher, following the worst week in two years for US stocks. The S&P 500 was up 1.4 per cent. The Dow Jones Industrial Average jumped 1.7 per cent, while the technology-focused Nasdaq Composite closed 1.6 per cent higher. Last week saw all three major stock indices enter correction territory, defined as a 10 per cent drop from the most recent high. Meanwhile, the Cboe’s Vix index, which looks at the options market to determine expected S&P 500 volatility, slid 3.2 points to 25.88.
- The dollar index, which tracks the US unit against a basket of peers, was down 0.3 per cent at 90.14. The euro was 0.3 per cent firmer versus the greenback at $1.2290. The dollar was 0.2 per cent softer versus the yen at ¥108.63. Sterling was up 0.1 per cent against the US currency at $1.3832.
- South Africa’s rand gained 0.5 per cent against the dollar amid rising expectations that president Jacob Zuma would be forced to leave office.
- The yield on the 10-year Treasury note was up 1 basis point at 2.86 per cent after crossing 2.9 per cent for the first time since 2014, while the more interest-rate sensitive two-year Treasury yield was flat at 2.07 per cent. The moves come ahead of US inflation figures due on Wednesday. The consumer price index is expected to show a pick-up in the pace of price rises. The German 10-year Bund yield climbed 1 basis point to 0.76 per cent. The UK 10-year Gilt yield was 3 basis points higher at 1.6 per cent. Yields move in the opposite direction to prices.
- Brent, the international crude benchmark, fell 0.2 per cent to $62.64 a barrel. West Texas Intermediate crude added 0.2 per cent to $59.31 per barrel.
