Futures in Asia are pointing to a mix start on Monday with Futures in Australia and Japan slightly lower and higher in Hong Kong. Last week’s concern on rising inflation and higher bond yields will likely be the continual drivers into the week.
The Turkish lira plummeted 17% in early Asian trading after Turkey President removed the chief of the central bank. The decision weighed down on the investor’s confidence. This saw the dollar and yen gaining strength against Group-of-10 currencies.
US equities were mixed on Friday. The Nasdaq was able to revert its losses into gains, finished the session 0.76% higher. The Dow Jones Industrial Average and S&P500 both traded lower, down 0.71% and 0.06% respectively as the financial sector weighed down.
Long-term yields on Friday were higher again. The US 10-year yields reached 14-month highs near 1.75% before closing at 1.73%. The US 2-year yields were 1 point lower and closed near 0.15%.
On the forex trading side, the dollar regained strength against major currencies on Friday. EURUSD fell from highs around $1.1939 to lows near $1.1874. AUDUSD fell from highs around $0.7773 to lows near $0.7717. Japanese yen (USDJPY) fell against the dollar from near 108.61 yen per dollar to near 109.13 yen per dollar.
Global oil finished its worst week since October with a 2% gain on Friday. Brent oil rose 1.98% to $64.53 per barrel. WTI crude rose 2.37% to $61.42 per barrel.
Gold rose 0.53% to near $1741 an ounce. Iron ore fell 3.5% to near $160 a tonne as China reported to limit some steel production until the end of 2021.
Key events this week:
– US Fed Chair Powell Speak (Tuesday)
– EIA crude oil inventory report (Wednesday)
– US personal income and spending (Friday)
– Euro Summit (Friday)
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