Investors continued to run out of bonds and buy goods in the hope that the launch of vaccines will revive the global economy, leaving European stocks lower on Monday.
Yield on the 10-year Treasury benchmark TMUBMUSD10Y,
rose 1.37% after rising 14.5 basis points last week. Yield for 10-year-old gold TMBMKGB-10Y from the UK,
and German Bund TMBMKDE-10Y,
increased as well. Yields are moving in the opposite direction to prices.
British Prime Minister Boris Johnson will unveil England’s reopening plan on Monday, which will begin with schools and expand to golf courses and tennis courts by the end of March, according to published reports. The country’s drilling plan is to be extended until the summer.
Globally, new cases of coronavirus have declined after peaking in January.
Copper HG00,
and palladium PA00,
led an advance on much of the metal complex on Monday.
“One of the (many) hot stories in the financial markets right now is the rise in base metal prices, where the tastes of copper, tin, nickel, lead and zinc come together behind global recovery expectations and supply challenges. This is happening at a time when investors believe that the Fed really wants to let inflation rise and that bonds are certainly not an asset class held in the current environment. The key challenge for financial markets is whether bond sales can prove orderly enough to allow asset classes to reflect – including equities to thrive, ”said ING strategists.
After missing a 0.2% increase last week, Stoxx Europe 600 SXXP,
decreased by 1.1%. US YM00 futures,
ES00,
NQ00,
they were also smaller.
Miners, including the BHP BHP group,
and Rio Tinto RIO,
advanced banks and banks, including HSBC Holdings HSBA,
were helped by the strengthening of the yield curve, which suggests higher margins.
Parts in the technology sector, such as the microchip equipment manufacturer ASML Holding ASML,
fell. There were also smaller companies that thrived during the pandemic, such as the fast-food delivery company Hero Hero DHER,
HelloFresh HFG table set maker,
and Ocado OCDO supermarket delivery company,