In European Equity Markets the pan-European Stoxx 600 was down 0.1%, with household goods falling 0.9% to lead losses while insurance stocks added 0.5%. Qiagen shares gained 5.3% by mid-afternoon after a report that the firm was in talks about a possible takeover, while French biotech company Biomerieux saw its shares climb 5.5% to lead the Stoxx 600. Swiss travel retailer Dufry fell 5.5% while Air France KLM shares shed 4.7% after Davy Research cut the carrier’s stock to “neutral” from “outperform.”
In Currency Markets the U.S. dollar rose to its strongest level of 2020 on Monday after last week’s run of data confirmed that the U.S. economy is holding up well, while China’s yuan briefly hit a new six-month high. Mostly, however, it was another quiet start to the week for currencies, with FX volatility near all-time lows and little in the way of key economic data. Sterling fell on Monday, down 0.3%, after weekend comments by finance minister Sajid Javid that Britain would not commit to sticking to European Union rules in post-Brexit trade talks.
In Commodities Markets oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, risking reducing crude flows from the OPEC member to a trickle. Brent crude was up 59 cents, or 0.9%, at $65.44, having earlier touched $66 a barrel, its highest since Jan. 9. West Texas Intermediate CL1 was up 39 cents, or 0.7%, at $58.93 a barrel, after rising to $59.73, the highest since Jan. 10.
In US Equity Markets activity is closed on Monday due to Martin Luther King Jr. Day.
In Bond Markets Canadian government bond prices were mixed across the yield curve on Monday, with the two-year flat to yield 1.648 percent and the 10-year falling 9 Canadian cents to yield 1.572%. Canada’s inflation report for December is due on Wednesday, while November retail sales data is due on Friday. Trading volumes were thin as Lunar New Year approaches in Asia and with U.S markets closed for Martin Luther King day on Monday.