In Asian Equity Markets stocks opened higher on Tuesday, cruising in the slipstream of a record high overnight gauge of global equity markets, with investors hoping for inflation and monetary policy clues later in a week full of key central bank meetings and data points. Australia’s S&P/ASX200 was up 0.32 percent, while Japan’s Nikkei 225 edged up 0.35 percent. MSCI’s gauge of Asia Pacific stocks outside Japan rose 0.11 percent. Hong Kong’s Hang Seng Index opened up 0.4 percent while China’s benchmark CSI300 Index opened flat.
In Currency Markets the U.S. dollar was subdued on Tuesday as investors looked to U.S. inflation data due later in the week after softer-than-expected jobs data quelled expectations of an early tapering in the Federal Reserve’s stimulus. The euro fetched $1.21915, bouncing back from its three-week low of $1.2104 set on Friday while the dollar eased to 109.26 yen, losing steam after having hit a two-month high of 110.325 late last week. The British pound hardly budged at $1.4169 while the Australian dollar was unchanged at $0.7753.
In US Equity Markets stocks were mixed on Monday as buyers stood on the sidelines on news of a global minimum corporate tax rate and lingering inflation fears, and a lack of market-moving catalysts. The Dow fell 0.47 percent, to 34,594.34, the S&P 500 lost 0.26 percent, at 4,219.09 and the Nasdaq Composite added 0.18 percent, at 13,839.27. Of the 11 major sectors in the S&P 500, seven were in negative territory, with materials suffering the largest percentage decline. Shares of Biogen Inc rose 42.7 percent on news that the FDA approved its Alzheimer’s disease drug aducanumab.
In Commodities Markets oil climbed above $72 a barrel, extending this year’s rally built on rising recovery demand and supply curbs from the OPEC and its allies, before giving up the gains as investors took profits. Brent crude futures settled down 40 cents at $71.49 a barrel. U.S. crude futures fell 39 cents to settle at 69.23 a barrel. Spot gold rose 0.3 percent to $1,895.77 per ounce. U.S. gold futures settled up 0.4 percent at $1,898.80 an ounce. Silver rose 0.4 percent to $27.88 per ounce, and palladium shed 0.3 percent to $2,837.22, while platinum advanced 0.7 percent to $1,170.00.
In European Equity Markets stocks hit record highs on Monday as another run of gains in automakers more than offset early declines in commodity-linked shares sparked by downbeat China export data. The continent-wide STOXX 600 index added 0.2 percent, with global investors now eyeing a ECB meeting later this week. The European automobiles and parts index rose 0.9 percent to reach its highest since March 2015, extending a 5.3 percent rally from last week. British-listed miner Anglo American fell 2.7 percent after it completed the spin-off of its Thungela thermal coal business.
In Bond Markets traders left U.S. Treasury yields little changed on Monday as they waited on the results of upcoming government bond auctions, while a Federal Reserve reverse repurchase facility took in a record amount of money. The benchmark 10-year yield was up less than a basis point at 1.567 percent in afternoon trading on Monday. The two-year U.S. Treasury yield was up less than a basis point at 0.1527 percent. Germany’s 10-year Bund yield was last up 1.5 basis points at -0.20 percent. Elsewhere, Italy’s 10-year bond yield briefly hit a one-month low at 0.869 percent, before moving higher.