In Asian Equity Markets stocks joined U.S. stock futures in making cautious gains on Monday ahead of U.S. inflation data this week, while the euro touched a seven-year top against the yen amid wagers on European Central Bank tightening. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent, while Japan’s Nikkei recouped early losses to gain 0.6 percent. Chinese blue chips climbed 1.3 percent after a survey confirmed service sector activity shrunk in May, but the Caixin index still improved to 41.4 from 36.2.

In Currency Markets the yen was on the back foot on Monday and the dollar held firm against most peers ahead of a busy policy-focused week in which inflation is in the spotlight with a major ECB meeting and U.S. consumer price data scheduled. The dollar climbed to 130.99 yen in early trade, a fresh one-month high, and not far from last month’s 20-year peak of 131.34, after gaining 2.95 percent last week. The Australian dollar was steady at $0.7206 on Monday, having gained 0.67 percent last week. The euro was a whisker firmer at $1.0733 on Monday morning and sterling was steady at $1.2505.

In US Equity Markets major stock indexes ended lower on Friday after a solid jobs report ate in to hopes for a pause in the Federal Reserve’s aggressive policy-tightening which is needed to cool decades-high inflation. The Dow fell 1.05 percent, to 32,899.7, the S&P 500 lost 1.63 percent, to 4,108.54 and the Nasdaq Composite fell 2.47 percent, to 12,012.73. Among the S&P’s 11 major sectors consumer discretionary was the weakest with a 2.9 percent decrease followed by technology’s 2.5 percent decrease. The energy index, up 1.4 percent, was the only gainer of the pack, as oil prices rose.

In Commodities Markets oil settled higher on Friday, supported by expectations that OPEC’s decision to increase production targets by slightly more than planned will not add that much to global supply which should tighten as China eases COVID restrictions. Brent crude rose 1.8 percent, to settle at $119.72 a barrel. U.S. West Texas Intermediate (WTI) crude advanced 1.7 percent, to $118.87. Spot gold fell 1 percent to $1,848.67 per ounce, after earlier falling to $1,846.4. Spot silver fell 1.9 percent to $21.85 per ounce. Platinum was down 1.4 percent to $1,008.35. Palladium fell 3.4 percent to $1,983.20.

In European Equity Markets stocks fell on Friday, wiping out earlier gains, after U.S. jobs data supported the case for the Federal Reserve’s aggressive policy tightening and investors raised their bets on ECB rate hikes following strong inflation numbers this week. The pan-European STOXX 600 index fell 0.3 percent with volumes expected to be subdued due to holidays in Britain and China. It ended the tumultuous week 0.9 percent lower. The rate-sensitive information technology sector led losses on the STOXX 600, while the auto sector declined 1.6 percent as France’s Faurecia slid 6.8 percent.

In Bond Markets U.S. Treasury yields rose to two-week highs on Friday after data showed the world’s largest economy created more jobs than expected last month, putting the Federal Reserve on track to raise interest rates by half a percentage point a few more times this year. In late morning trading, the U.S. benchmark 10-year yield rose 2.4 bps to 2.9387 percent, after earlier hitting a two-week high of 2.986 percent. U.S. 30-year yields were up 3.6 bps at 3.1102 percent. Earlier, they touched a two-week peak of 3.158 percent.