Global stock indices remained at record highs and yields on the U.S. dollar and government bonds soared as some of the world’s largest economies pushed for an easing of COVID-19 restrictions.
Cyclical sensitive sectors, including mining, tourism and energy, helped to achieve modest early growth in Europe, where UK markets were also catching up after an extended weekend.
The cost of borrowing in the bond market has also grown slowly, although signs that the world’s major central banks are still in no rush to abandon their massive stimulus schemes have kept them below their recent 13-month highs.
Rising prices for virtually everything from wood and wheat to silicon microchips have sparked talk of a spike in inflation, but New York Fed chief John Williams said Monday that the US economic momentum is “not enough” to change anything. …
The central bank of Australia left its key interest rates almost at zero level on the eve of the fifth meeting in a row and promised to keep its policy super-supportive for a long period.
The broadest global MSCI index, which tracks 50 countries, barely budged, just 1 percent from its all-time high. The Australian S & P / ASX200 rose 0.6 percent and the Hong Kong index rose 0.7 percent as a result of sluggish trading due to holidays in both China and Japan.
The Taiwan Tech Exchange was an exception, with shares ending 1.7% amid a rare surge in internal COVID-19 infections and after Wall Street tech indices plunged on Monday.
“We see short-term inflation volatility as economic growth resumes and we believe that markets are underestimating the potential for medium-term price pressures,” BlackRock analysts said in their weekly report.
In the forex market, the US dollar has regained some ground to partly defuse a prolonged fall last month as investors equalized ahead of key employment data due later in the week.
Sterling fell slightly to $ 1.3870 ahead of the Bank of England meeting on Thursday, at which analysts say the bank may announce a slowdown in its bond buying program.
Key regional elections in the UK will also take place on Thursday. The main focus will be on Scotland, where a major SNP victory in parliamentary elections will bring Scotland’s independence back to the UK.
Elsewhere, cryptocurrency Ether reached another all-time high, approaching $ 3,500 as speculators lift the hot cryptocurrency markets higher. Last time it cost $ 3313.
For oil supporters, Brent crude fell 0.2% to $ 67.38, while US light crude fell 0.3% to $ 64.56. Gold, meanwhile, fell from more than two months of gains to $ 1,785 an ounce.