Markets:
- 10-year Treasury yields flat at 5.277%
- AUD leads, EUR and NZD lag
- Gold up 0.3% to $4,153
- Brent crude up 0.3% to $102.60
- European stocks mostly higher; S&P 500 futures down 0.1%
- Bitcoin up 0.3% to $86,099
It’s a brand new week but same old story for markets.
The softer US jobs report on Friday brought some relief to stocks and bonds, and while that hasn’t gathered pace today, we’re not seeing the broader market mood worsen at the very least.
The bond market remains the key spot to watch and that is keeping the overall mood on edge still. 10-year Treasury yields fell to a low of 5.16% after the jobs data on Friday before quickly rebounding to 5.28%. And as we get into the new week, yields are keeping thereabouts with the long-end continuing to threaten another push higher again.
In turn, that is helping to underpin the dollar with USD/JPY rising back above the 158.00 level to 158.25. Meanwhile, the euro is among the laggards as French fiscal risks are rearing its ugly head again and that is weighing on the single currency as well as French stocks. EUR/USD is down 0.4% to 1.1205 with the low earlier touching 1.1160 – its lowest in 17 months.
Looking at equities, European indices are holding slight gains for the most part with only the CAC 40 seeing red on the session. As mentioned, that owes much to worries concerning France’s fiscal position amid growing concerns over the country’s debt outlook and political uncertainty ahead of next year’s presidential election. The French benchmark index is down by 0.5% on the day currently.
Meanwhile, US futures are keeping more tentative with S&P 500 futures down 0.1% and Nasdaq futures also down 0.1% on the day.
In other markets, gold is holding just a touch higher at $4,153 but still lacks any real uspide conviction below the $4,200 mark.
It is still all about the bond market as we get into the new week, with investors digesting where to go next now after the US jobs report last week.
This article was written by Justin Low at investinglive.com.