Closing Feb 4
In European Equity Markets the pan-European Stoxx 600 closed down 0.13 percent, with most sectors in negative territory. Europe's autos stocks, with their heavy exposure to China, led the losses on Monday, down 1.55 percent. Faurecia, Valeo and Hella all fell around 3 percent. European banks were also under pressure, on the back of earnings news. Julius Baer fell over 4 percent after reporting results that missed expectations. Spanish lenders Caixabank and Banco Sabadell both fell more than 4 percent after multiple brokers cut share price targets.
In Currency Markets the U.S. dollar was broadly stronger on Monday, as investors took heart from Friday’s strong payroll number and improved risk appetite helped lift the greenback to a five-week high against the safe-haven yen. The euro weakened as investors fretted over economic risks to the euro zone economy, while concerns about Britain’s plan to leave the European Union dragged the pound lower. The dollar index, which tracks the greenback versus the euro, yen, British pound and three other currencies, was up 0.3 percent at 95.87.
In Commodities Markets oil hit a two-month high near $64 a barrel as OPEC-led supply cuts and U.S. sanctions against Venezuela’s oil exports brightened the supply outlook, but prices fell back on uncertainty about prospects for global economy. The OPEC and its allies began a new round of supply cuts in January. These curbs, led by Saudi Arabia, have been compounded by involuntary losses that the Venezuelan sanctions could deepen. Brent crude, the global benchmark, hit $63.63 a barrel, the highest since Dec. 7, but was down 86 cents at $61.89.
In US Equity Markets indices were flat on Monday as a tech boost was offset by declines in energy companies, as investors wait for Alphabet’s results after the bell following mixed earnings from other FAANG stocks. However, a more than 1 percent rise from marquee companies such as Alphabet Inc, Apple Inc and Microsoft Corp boosted the Nasdaq. The technology sector rose 0.67 percent. The S&P 500 was down 0.21 percent, at 2,700.80 and the Nasdaq Composite was up 0.22 percent, at 7,279.94.
In Bond Markets U.S. Treasury prices fell on Monday in generally light volume, after trading higher for most of last week, pressured by upcoming debt supply, as well as indications that inflation expectations are rising. In mid-morning trading, U.S. 10-year note yields rose to 2.73 percent, up from 2.691 percent late on Friday. U.S. 30-year bond yields, were also up at 3.071 percent , from 3.032 percent on Friday. On the short end of the curve, U.S. 2-year yields climbed as well to 2.53 percent, compared with Friday's 2.51 percent.
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