In Asian Equity Markets Japanese stocks retreated from three-decade peaks on Monday as investors took profits after a recent rally, with declines in global equities fuelling a cautious mood. The broad Topix fell 0.19 percent to 2,087.67 at the lunch break, compared with its Friday close of 2,091.65, the highest since 1990. The Nikkei index lost 0.29 percent to 30,292.84, after marking an almost seven-month closing high of 30,381.84 at the end of last week. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.7 percent, after bouncing on Friday. Chinese blue chips were off 0.3 percent.
In Currency Markets the dollar began a busy data week on a firm footing, with immediate focus turning to U.S. inflation figures but investors are also wary of the Federal Reserve priming to exit from its super-supportive policy stance even as COVID-19 cases rise. Moves were modest but the euro fell back under $1.18 to $1.1792. The Australian dollar was 0.2 percent weaker at $0.7337 — and it has struggled to hold over $0.74 — while the kiwi was down 0.4 percent at $0.71 as a lockdown of Auckland was extended until midnight on Sept. 21. The dollar index rose 0.1 percent to 92.739.
In US Equity Markets stocks fell on Friday as investors weighed signs of higher inflation, while Apple Inc fell following an unfavorable court ruling related to its app store. The Dow fell 0.78 percent to close at 34,607.72 points, while the S&P 500 lost 0.77 percent to 4,458.58. The Nasdaq Composite lost 0.87 percent to 15,115.49. All of the eleven S&P 500 sector indexes fell, with real estate and utilities each down more than 1 percent and leading the declines. Grocer Kroger Co lost nearly 8 percent after it said global supply chain disruptions, freight costs, discounts and wastage would hit its profit margins.
In Commodities Markets gold edged lower on Friday amid uncertainty over the U.S. Federal Reserve’s tapering timeline that kept most investors on the sidelines, with gains in the dollar this week putting bullion on course to mark its first weekly decline in five. Spot gold fell 0.2 percent to $1,790.37 an ounce. Silver fell 0.9 percent to $23.86 per ounce, while platinum fell 1.9 percent to $958.51 per ounce. Palladium fell 1.7 percent to $2,142.12 per ounce. Brent crude rose to settle at 2.3 percent, to $72.92. The session high was $73.15 a barrel. U.S. WTI crude rose 2.3 percent, to $69.72.
In European Equity Markets stocks closed lower on Friday, down more than 1 percent this week as investors weighed risks from tighter monetary policies after the European Central Bank signalled a slowdown of pandemic-era bond purchases. The pan-European STOXX 600 index fell 0.3 percent and declined for four of five sessions this week as worries persisted about a slowing global economic recovery. Tech stocks in Europe rose 0.7 percent, while luxury stocks got a boost as France’s LVMH rose 0.8 percent after HSBC recommended buying the stock.
In Bond Markets the benchmark U.S. 10-year Treasury yield rose on Friday following its biggest two day decline in about three weeks after economic data indicated high inflation could persist for some time. The 10-year yield has traded between a high of 1.423 percent and a low of 1.127 percent since mid-July. The yield on the 30-year Treasury bond was up 3.7 basis points to 1.936 percent. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.1 basis point at 0.217 percent.