- As high inflation, monetary tightening, and the threat of an economic downturn fuelled another bout of risk aversion, US equity futures and equities sank again on Monday, while the dollar rose.
- After the fifth consecutive weekly decline in global equities and bonds, the S&P 500 and Nasdaq 100 contracts fell over 1%, Japan led an Asian market gauge lower, and sovereign debt was under pressure.
- The yuan depreciated when China's stock markets changed. The economic toll of the Covid lockdowns is likely to be evident in the data, which includes the worst export growth since 2020 and declining imports. China's Premier Li expressed concern over the job market as Beijing and Shanghai tightened viral controls.
- Oil prices were hovering around $109 per barrel. Demand from China's expansion is weighing on crude, as are supply concerns tied to Russia's battle in Ukraine.
- Treasury rates fell but remained close to 2018 levels, while Australian bonds continued to decline. This week's inflation data from the US and elsewhere could influence bond market fluctuations.
