Global share markets started in haphazard fashion on Monday as soft US data suggested downside risks for this week’s June payrolls report, while the hubbub over possible recession was still driving a relief rally in government bonds.
The search for safety kept the U.S. dollar near 20-year highs, though early action was light with U.S. markets on holiday.
Cash Treasuries were shut but futures TYc1 extended their gains, implying 10-year yields US10YT=RR were holding around 2.88% having fallen 61 basis points from their June peak.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat, after losing 1.8% last week. Japan’s Nikkei .N225 added 0.6%, while South Korea .KS11 fell 0.8%.
Chinese blue chips .CSI300 edged up 0.3%, though cities in eastern China tightened COVID-19 curbs on Sunday amid new coronavirus clusters.
EUROSTOXX 50 futures STXEc1 added 0.5% and FTSE futures FFIc1 0.8%. However, both S&P 500 futures ESc1 and Nasdaq futures NQc1 eased 0.7%, after steadying just a little on Friday.
David J. Kostin, an analyst at Goldman Sachs, noted that every S&P 500 sector bar energy saw negative returns in the first half of the year amid extreme volatility.