Investors continued to flee bonds and buy commodities in hopes that the launch of vaccines will revitalize the world economy, sending European stocks lower on Monday. The yield on the benchmark 10-year Treasury TMUBMUSD10Y, 1.372% rose to 1.37%, after rising 14.5 basis points last week. The yield on the 10-year British government bond TMBMKGB-10Y, 0.712% and the German bond TMBMKDE-10Y, -0.298% also increased. Yields move in the opposite direction to prices.
UK Prime Minister Boris Johnson will present England’s reopening plan on Monday, which will start with schools and extend to golf courses and tennis courts by the end of March, according to published reports. The country’s licensing plan will run through the summer. Globally, new coronavirus cases have declined after peaking in January. Copper HG00, + 0.69% and palladium PA00, + 0.71% led on Monday an advance in much of the metal complex. “One of the (many) hot stories in the financial markets right now is rising base metal prices, where copper, tin, nickel, lead and zinc are on the rally thanks to the hopes global recovery and supply challenges. This comes at a time when investors are coming to the view that the Fed really wants to let inflation warm up and that bonds are certainly not an asset class to hold in the current environment. The key challenge for financial markets is whether the bond liquidation can turn out to be orderly enough to allow reflationary asset classes, including equities, to flourish, ”ING strategists said. After posting a 0.2% gain last week, the Stoxx Europe 600 SXXP, -0.79% fell 1.1%. US stock futures YM00, -0.57% ES00, -0.77% NQ00, -1.22% were also down. Miners like BHP Group BHP, + 0.97% and Rio Tinto RIO, -0.58% advanced, and banks like HSBC Holdings HSBA, + 0.97% were favored by the steep yield curve, suggesting higher margins. high. Shares in the tech sector, such as microchip equipment maker ASML Holding ASML, fell -2.49%. Companies that prospered during the pandemic also fell, such as the fast food delivery company Delivery Hero DHER, -4.15%, the food kit maker HelloFresh HFG, -4.75% and the supermarket delivery company Ocado OCDO, -3.71%.