Concerns about the economic downturn following the release of weak data from China and the United States (US) have caused stock markets to close mixed.
Meanwhile, the 10 -year Treasury yield note, which is still below 3%, has fueled hopes that the Federal Reserve (Fed) will raise interest rates more prudently.
Following global developments, the April Covid-19 blockade in China has caused supply chain problems to escalate, while U.S. production results have also been affected by a drop in new orders and shipments in May.
On Wall Street, the average Dow Jones Industrial index rose 0.08% but the S&P 500 index lost 0.39% and the Nasdaq Composite fell 1.2%.
The pan-European STOXX 600 index remained 0.04% while shares in emerging markets jumped 0.30%.
The MSCI benchmark of worldwide stocks closed 0.21% lower with the 10 -year benchmark note down 4.7 basis points at 2.886% after hitting a 3.2% level last week.
According to Great Hill Capital LLC chairman Tom Hayes, a drop in Treasury yields below 3% is a topic of concern as it will impact the Fed’s plans to either increase or maintain rate hikes.
Hayes added that attention will also be focused on the 5 Fed officials who will speak on Tuesday in determining investor sentiment behind the ongoing market crash.
Meanwhile, Ingalls & Snyder senior strategist Tim Ghriskey opined that apart from the issue in China, news in Europe about Putin's threats against Finland's plans as well as Sweden's plans to join NATO also shook the market.
As a result, he noted that the profit-taking activity that took place after the rally on Friday was not a surprise as there were no positive drivers in the market.
The currency summary saw the dollar fall slightly at 0.316% while the Euro rose 0.18% at $ 1.0431 and the Japanese Yen strengthened at 129.07 per dollar.
Gold futures rose 0.3% at $ 1,814 an ounce following a decline in Treasury yields.
Bitcoin was down 5.21% at $ 29,664.88.
