“The risk is that, globally, we get a second wave,” said Chris Iggo, the chief investment officer for core investments at AXA Investment Managers. “Now is the time to have that long-duration bond exposure in the portfolio.”
Key Chinese data on Monday showed signs of progress, albeit a bumpy path, as the world’s second-biggest economy recovers. Retail sales and industrial output were marginally weaker than expectations in May, but still showed a pick up from the previous month. Officials moved a press briefing online due to the latest virus outbreak in Beijing.
These are some key events coming up:
- Policy decisions from the Bank of Japan, Bank of England and the Swiss National Bank are due this week.
- China on Monday releases industrial production and retail sales data for May.
- CBOE plans to open its trading floor, which has been electronic only since March 16.
- Federal Reserve Chairman Jerome Powell delivers his semi-annual policy report to Congress.
These are some of the main moves in markets:
- S&P 500 futures fell 1.1% as of 11:12 a.m. in Tokyo. The S&P 500 advanced 1.3% on Friday.
- Japan’s Topix index was down 0.2%.
- Hong Kong’s Hang Seng fell 0.6%.
- Kospi Index dropped 0.2%.
- Shanghai Composite lost 0.1%.
- Australia’s S&P/ASX 200 Index, which tumbled almost 5% the previous two sessions, was down 0.1%.
- Euro Stoxx 50 futures retreated 0.6%.
- The yen edged up 0.1% to 107.28 per dollar.
- The offshore yuan slipped 0.1% to 7.0872 per dollar.
- The euro was at $1.1250.
- The Bloomberg Dollar Spot Index rose 0.2%.
- The yield on 10-year Treasuries fell about three basis points to 0.67%.
- Australia’s 10-year yield fell four basis points to 0.87%.
- West Texas Intermediate crude dropped 3.5% to $34.99 a barrel.
- Gold was at $1,731.56 an ounce, little changed.