China’s bourses fluctuated and the yuan weakened. Data there are likely show the economic toll of Covid lockdowns, including the slowest export growth since 2020 and shrinking imports. Premier Li Keqiang warned about the employment situation as Beijing and Shanghai tightened virus curbs.

Oil hovered around $109 per barrel. Crude is being buffeted by the demand hit from China’s outbreak and supply risks linked to Russia’s war in Ukraine.

Treasury yields dipped but remained in sight of levels last seen in 2018, while Australian bonds extended a selloff. Inflation data this week from the U.S. and elsewhere could drive bond-market swings.

Volatility remains the watchword in global markets on growth, inflation and war risks. Later on Monday, President Vladimir Putin is due to speak at Russia’s May 9 Victory Day parade, which marks the anniversary of Nazi Germany’s surrender in 1945. He may indicate his next steps for the Ukraine invasion.

The short-term outlook for stocks “is still messy and there may be more downside as markets worry about a significant economic slowdown or ‘hard landing’ and aggressive interest-rate hikes,” Diana Mousina, senior economist at AMP Investments, wrote in a note.

Federal Reserve officials have been defending the US central bank against arguments that it’s fallen well behind in the fight against inflation.

Fed Governor Christopher Waller and St. Louis Fed Bank President James Bullard said critics don’t take enough account of the tightening of financial conditions the Fed engineered even before it began raising rates in March.

In the latest Russia-related developments, the Group of Seven most-industrialized countries pledged to ban the import of Russian oil. The European Union is working on a similar plan but Hungary remains a holdout and the bloc’s talks are set to continue.

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 1.2% as of 10:54 a.m. in Tokyo. The S&P 500 fell 0.6% Friday
• Nasdaq 100 futures slid 1.1%. The Nasdaq 100 fell 1.2% Friday
• Japan’s Topix index lost 1.4%
• Australia’s S&P/ASX 200 index shed 1.6%
• South Korea’s Kospi index fell 0.8%
• China’s Shanghai Composite Index rose 0.2%
• Euro Stoxx 50 futures shed 1.5%

Currencies

• The Bloomberg Dollar Spot Index rose 0.3%
• The euro was at $1.0526, down 0.2%
• The Japanese yen was at 130.79 per dollar, down 0.2%
• The offshore yuan was at 6.7309 per dollar, down 0.2%

Bonds

• The yield on 10-year Treasuries was at 3.12%
• Australia’s 10-year yield rose seven basis points to 3.54%

Commodities

• West Texas Intermediate crude fell 0.3% at $109.44 a barrel
• Gold was at $1,879.47 an ounce, down 0.2% BM