Markets have kicked off the new week in a mixed mood, as US Treasury yields remain depressed despite upbeat US data. Cryptocurrencies are attempting recovery after a weekend crash. Rising global covid cases and advancing vaccination efforts are eyed.
Mixed markets: Asian stocks and US futures are stable after closing last week significantly higher. Returns on US ten-year bonds remain below 1.60%, somewhat helping stocks.
Cryptocurrencies have been attempting a recovery after collapsing over the weekend. Bitcoin is trading at around $57,000 after dipping below $52,000 on Sunday and nearing $65,000 last week. Ethereum and XRP are mimicking BTC’s moves while Dogecoin stands out with rapid gains. The sharp moves come after Coinbase, one of the world’s largest digital asset exchanges, listed on Wall Street.
EUR/USD is trading below 1.20 as political uncertainty in Germany’s ruling CDU party persists while more shots are getting into arms. The Eruopean Central Bank’s rate decision is awaited on Thursday.
GBP/USD is clinging to gains around 1.3850 as nearly half the population has received at least one inoculation. Gold has been holding onto its gains, benefiting from low US yields with XAU/USD hovering above $1,770.
The US reached 40% of its population with one jab, as all Americans are now offered the vaccine, but COVID-19 cases continue rising in several states. The reopening boosted economic activity as seen in March’s 9.8% leap in retail sales and a sharp drop in jobless claims to 576,000.
On the other hand, global coronavirus cases continue rising, hitting new records above five million per week. India is among the countries suffering a sharp increase.
In China, Huarong, a troubled asset manager, has paid a large bond debt, alleviating worries that were circulating in recent weeks. The world’s second-largest economy grew at a rapid annual pace in the first quarter this year but industrial output expansion somewhat disappointed.