Global bonds fell, with investors driving the benchmark Treasury yield up to the highest levels in four years, as the dollar advanced versus its major peers and West Texas oil climbed. European shares edged higher after most Asian equity benchmarks and U.S. futures slipped.
Investors appeared to be trading with caution as Treasury markets reopened after the Presidents’ Day break. While the Stoxx Europe 600 index crept higher, there was a pullback for equities in Asia after several days of increases, with sizable declines for benchmarks in both Japan and South Korea. Hong Kong shares fluctuated as traders returned after a holiday.
All eyes will now turn to the U.S. Treasury, which opens its auction floodgates this week with sales totaling $258 billion. Traders will also get to parse minutes from both the latest Federal Reserve and European Central Bank meetings.
Meanwhile, Bank of Japan Governor Haruhiko Kuroda didn’t discuss monetary policy during an appearance in parliament. Speculation has been swirling about the possibility the BOJ is scaling back its stimulus since the central bank reduced its purchases of government bonds in January.
Elsewhere, WTI oil climbed above $62 a barrel for the first time in more than a week as an alliance of some of the world’s largest oil producers signaled further cooperation to tighten supply through the end of the year. Bitcoin broke above $11,500.
Here are some key events scheduled for this week:
The Federal Reserve will release minutes on Wednesday of its Jan. 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged.
Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City.
Companies announcing earnings this week include Walmart, Home Depot, Glencore, and Barclays.
Chinese markets reopen on Thursday.
These are the main moves in markets:
The Stoxx Europe 600 Index climbed 0.2 percent as of 8:15 a.m. London time.
Futures on the S&P 500 Index dipped 0.3 percent, in the first retreat in more than a week.
The MSCI Asia Pacific Index sank 0.8 percent, the first drop in more than a week.
The U.K.’s FTSE 100 Index was little changed.
The MSCI Emerging Market Index fell 0.5 percent, the biggest decline in more than a week.
The Bloomberg Dollar Spot Index climbed 0.4 percent to the highest in a week.
The euro declined 0.5 percent to $1.2347, the lowest in more than a week.
The British pound dipped 0.5 percent to $1.3934.
Japan’s yen sank 0.5 percent to 107.13 per dollar, in the largest decrease in more than two weeks.
South Africa’s rand declined 0.6 percent to 11.7365 per dollar.
The yield on 10-year Treasuries increased five basis points to 2.92 percent, the highest in more than four years.
Germany’s 10-year yield climbed two basis points to 0.76 percent.
Britain’s 10-year yield rose two basis points to 1.622 percent.
West Texas Intermediate crude climbed 0.8 percent to $62.19 a barrel, the highest in two weeks.
Gold sank 0.7 percent to $1,337.02 an ounce, the biggest dip in two weeks.