13 August 2024
In the US, the S&P 500 ended flat on Monday, ahead of this week’s macro data releases including CPI inflation and retail sales.
US Treasuries rose (yields fell) amid concerns over geopolitical risks in the Middle East, despite a heavy corporate issuance slate and a jump in oil prices. 10-year yields declined 4bp to 3.90%.
European stock markets were mixed on Monday as investors head into a data-heavy week. The Euro Stoxx 50 closed 0.1% lower. The German DAX ended little changed, as the French CAC was down 0.3%. In the UK, the FTSE-100 closed 0.5% higher.
European government bonds were largely unchanged. 10-year German and French yields ended flat at 2.22% and 2.97%, respectively. In the UK, 10-year gilt yields edged 2bp lower to 3.92%.
Asian stock markets traded mixed but mostly higher on Monday, as technology shares extended their recovery following a sharp selloff earlier last week. Investor caution, however, prevailed ahead of a slew of US and China macro data this week. Korea’s Kospi closed 1.2% higher. China’s Shanghai Composite (-0.1%), Hong Kong’s Hang Seng (+0.1%) and India’s Sensex (-0.1%) all ended little changed. Japan’s market was closed for a public holiday.
Crude oil prices rallied on Monday on rising worries over geopolitical developments in the Middle East. Investors also assessed OPEC’s lower projections for global oil demand. WTI crude for September delivery settled 4.2% higher at USD80.1 a barrel.
India’s CPI inflation eased from 5.1% yoy in June to 3.5% yoy in July, driven by a decline in food price inflation due to a high base effect.
In the UK, the unemployment rate is expected to nudge higher to 4.5% in June from 4.4% in May.
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