In Asian Equity Markets stocks eked out modest gains on Tuesday as buyers were held back by persistent global cost pressures, with investors turning their focus this week to U.S. inflation data and the prospects for further aggressive Fed rate hikes. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3 percent. Japan’s Nikkei slid 0.95 percent, hit by weak quarterly earnings by heavyweights and lowered expectations for the video game market, while Australian shares rose 0.06 percent. China’s blue-chip CSI300 index was up 0.16 percent. Hong Kong’s Hang Seng index advanced 0.4 percent.
In Currency Markets the dollar lurked just below recent highs on Tuesday as traders waited for U.S. inflation data due later in the week, wary of a surprise that could heap more upward pressure on interest rates. The Australian and New Zealand dollars rose overnight and were steady in the pre-CPI calm in Asia. The Aussie held gains at $0.6974. The kiwi did likewise at $0.6281. Sterling held at $1.2084 and the euro was stuck just above parity at $1.0194, with the continent’s energy crisis meaning it may miss out on a boost if the dollar weakened. The yen held at 134.94 per dollar.
In US Equity Markets stocks closed mostly flat on Monday after blockbuster jobs data last week reinforced expectations the Federal Reserve will crack down on inflation, while a revenue warning from chipmaker Nvidia reminded investors of a slowing U.S. economy. The Dow rose 0.09 percent, to 32,832.54, while the S&P 500 lost 0.12 percent, to 4,140.06 and the Nasdaq Composite fell 0.1 percent, to 12,644.46. Nvidia Corp slid 6.3 percent after the company said it expects second-quarter revenue to decline 19 percent from the prior quarter to about $6.7 billion, due to weakness in gaming.
In Commodities Markets oil prices rose nearly 2 percent on Monday in volatile trading, bouncing off multi-month lows touched last week, as positive economic data from China and the United States fed hopes for demand despite nagging fears of a recession. Brent crude futures settled 1.8 percent, at $96.65 a barrel. U.S. West Texas Intermediate crude was at $90.76 a barrel, up 1.97 percent. Spot gold rose 0.8 percent to $1,787.39 per ounce. Spot silver rose 3.7 percent to $20.60 per ounce, while platinum was up 0.5 percent to $937.0. Palladium jumped 5.6 percent to $2,245.68.
In European Equity Markets stocks logged their best day in nearly two weeks on Monday after clocking falls in the previous week when a strong U.S. jobs report rekindled bets of another aggressive rate hike by the Federal Reserve. The pan-European STOXX 600 index rose 0.8 percent, steadying after snapping two weeks of gains on Friday. Danish brewer Carlsberg rose 1.5 percent after lifting its profit growth outlook for 2022, saying it has been able to resume Ukraine operations and log a strong performance in Europe and Asia.
In Bond Markets U.S. Treasury yields fell on Monday as investors continued to digest an unexpectedly strong jobs report from Friday and before highly anticipated inflation data on Wednesday, which will be scrutinized for how aggressively the Federal Reserve is likely to continue interest rates hikes. Benchmark 10-year note yields fell to 2.763 percent on Monday, after getting as high as 2.869 percent on Friday, the highest since July 22. Two-year yields were last 3.216 percent, after reaching 3.331 percent on Friday, the highest since June 16.