The physical US bind market was closed for the Federal holiday while stock markets remained open.
Forex trades its own world and while liquidity was reduced with the partial US holiday and Canada on holiday also FX moves were not small.
Greg has the market wrap here:
What follows is my own (selective) wrap of a very big Monday:
- oil prices headed (much) higher again, which contributed to higher global bond yields as concern over inflation rises (higher oil prices are passed through to goods and services)
- coal futures markets in China surged over 10% on Monday, hitting record highs. Heavy flooding in Shanxi province (responsible for around 30% of cola output) shuttered at least 60 mining operations (out of 682 mines in the region)
- Also higher on Monday, copper almost +2%, iron ore futures +3.5%
- US stock indexes down
In the FX space:
- USD/JPY rocketed higher, driven by rising oil prices and higher US yields
- AUD is a relative outperformer, the largest state of NSW is reopening as vax targets are hit - the Australian state (along with Victoria) has abandoned its 'zero' covid policy now that vaccination is available; people now are being urged to take responsibility for their own health and get vaccinated
- AUD benefitted from iron ore also - its up circa 50% from recent pullback lows hit in September
- Oh yeah ... JPM big wig Dimon said Bitcoin is worthless. I extend my offer to come around and collect any of his he wants to throw away.
What is my wrap missing - any moves you like to note, in the comments please folks!
