In Asian Equity Markets stocks were enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week. On Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.9 percent, after shedding 2.3 percent last week. Japan’s Nikkei bounced 2.3 percent, and away from a two-month trough touched on Friday, while South Korea added 0.9 percent. Chinese blue chips rose 1.7 percent.
In Currency Markets risk currencies hovered above their recent lows against the dollar and the yen on Monday, as fears about slowdown in the global economic recovery appeared to have subsided for now. The euro traded at $1.1868, edging back from its three-month low of $1.17815 set on Wednesday while against the yen the common currency stood at 130.73 yen, off Thursday’s 2-1/2-month low of 129.63 yen. Sterling held at $1.3887 while the Australian dollar has bounced back from Friday’s seven-month low of $0.7410, even if it traded a little soft through the Asia session at $0.7472.
In US Equity Markets the three major U.S. stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded after a selloff sparked by growth worries earlier in the week. The Dow rose 1.3 percent, to 34,870.16, the S&P 500 gained 1.13 percent, to 4,369.55 and the Nasdaq Composite added 0.98 percent, to 14,701.92. Financials led sector advances followed by energy, materials and industrials. Big banks including JPMorgan Chase & Co will kick off the second-quarter earnings season next week when they report results.
In Commodities Markets gold rose on Friday, heading for its best week in seven, bolstered by a weaker dollar and concerns that the spread of the Delta variant of the coronavirus could slow a global economic recovery. Spot gold rose 0.5 percent to $1,810.99 per ounce and silver rose 0.9 percent to $26.15 per ounce. Platinum gained 2.5 percent at $1,102.53 and palladium rose 0.2 percent to $2,811.90, with both metals headed for a weekly gain. Oil prices added to overnight gains as U.S inventories declined. U.S. crude was up 2.3 percent to $74.62 per barrel and Brent was at $75.58, up 1.97 percent on the day.
In European Equity Markets stocks rose more than 1 percent on Friday, posting their best session in two months and erasing all of this week’s losses, as investors sought bargains after one of the worst sell-offs this year on global economic recovery worries. The pan-European STOXX 600 index gained 1.3 percent, with sectors that took a hit earlier this week such as automakers and miners rising 4 percent and 3.4 percent, respectively. The mining sector marked its best session in two months. French stocks rose by the most in four months, advancing 2.1 percent and leading gains among major European bourses.
In Bond Markets U.S. Treasury yields climbed on Friday, halting an eight-day price rally that was fueled in part by worries the economic recovery had already peaked and was showing signs of faltering amid a surge in coronavirus infections in many places around the globe. The yield on 10-year Treasury notes was up 7 basis points to 1.358 percent after falling as low as 1.25 percent on Thursday, the lowest level since Feb. 16. The yield on the 30-year Treasury bond was up 7.5 basis points to 1.985 percent after falling to 1.856 percent on Thursday, marking its lowest level since Feb. 2.