Asian stock markets improved while oil markets declined in hopes that peace dialogue between Russia and Ukraine would go smoothly while bond markets were preparing for rate hikes in the United States (US) and the United Kingdom (UK).
As a result, S&P 500 futures added 0.7% and Nasdaq Composite futures rose 0.6%.
Japan's Nikkei jumped 1.1% while the MSCI Asia Pacific index of stocks outside Japan jumped 0.1%.
Meanwhile, the bond market, which was under pressure due to the surge in commodity prices last week, was seen preparing for an inflationary boom with 10 -year treasury yields up 3 basis points at 2.03% on Monday morning.
Meanwhile, the main measure of US inflation expects a rise of 3%, approaching the highest level and the Federal Reserve (Fed) expects a rate hike at 25 basis points.
According to Kevin Cummins, chief economist of NatWest Markets, the Fed is expected to raise 4 or 5 times in 2022 following the rapid growth rate of inflation since the FOMC dialogue in January.
In addition, the Bank of England (BOE) is expected to make a 0.75% increase on Thursday and signal a more aggressive 2% increase by the end of the year.
On the currency market, the Euro traded at $ 1.0927, a 22 -month high of $ 1.0804 while the dollar reached a new high in 5 years against the Yen at 117.55.
According to FX NAB’s senior strategist, Rodrigo Catril noted that the Yen failed to exhibit its safe-haven characteristics due to the high rise in US yields and the curve on Bank of Japan (BOJ) yields in controlling policy.
Meanwhile, safe-haven gold slipped from last week’s high of 0.6% at $ 1,972 an ounce.
Oil was also in decline following the peace dialogue between Russia and Ukraine with Brent oil trading low $ 1.69 at $ 110.98 and US crude falling $ 2.11 at $ 107.22.
