Investors continued to shy away from bonds and snap up commodities in hopes that the launch of vaccines would invigorate the global economy, causing European stocks to fall on Monday.
The 10-year Treasury yield of reference TMUBMUSD10Y,
rose to 1.37%, after rising 14.5 basis points last week. The UK 10-year golden yield TMBMKGB-10Y,
and German package TMBMKDE-10Y,
also increased. Yields move in the opposite direction to prices.
UK Prime Minister Boris Johnson is due to release England’s reopening plan on Monday, which will start with schools and, in late March, will extend to golf courses and tennis courts, according to published reports. The country’s license plan is expected to be extended until the summer.
Overall, new coronavirus cases declined after peaking in January.
Copper HG00,
and palladium PA00,
led a breakthrough in much of the metal complex on Monday.
“One of the (many) hot stories in the financial markets at the moment is the rise in base metal prices, where products like copper, tin, nickel, lead and zinc are all recovering due to hopes of global recovery and supply challenges. This comes at a time when investors are coming to the conclusion that the Fed really wants to let inflation heat up and that bonds are certainly not an asset class to maintain in the current environment. The main challenge for financial markets is whether securities settlement can be ordered enough to allow reflective asset classes – including stocks to thrive, ”said ING strategists.
After sizzling a 0.2% increase last week, Stoxx Europe 600 SXXP,
fell 1.1%. US stock futures YM00,
ES00,
NQ00,
were also minor.
Miners, including BHP Group BHP,
and Rio Tinto RIO,
advanced, and banks including HSBC Holdings HSBA,
were helped by the slope of the interest curve, which suggests higher margins.
Technology sector games, as a manufacturer of microchip equipment ASML Holding ASML,
dropped down. Also lower were companies that thrived during the pandemic, like fast food delivery company Delivery Hero DHER,
HelloFresh HFG meal kit preparer,
and the Ocado OCDO supermarket delivery company,