Global equities struggled to keep up on Monday as amid prospect of rising inflation and surge in COVID-19 cases soaring yield drove down valuation.
Recent U.S. labor market data came in strong which posted stronger case for Federal Reserve to raise interest rate. The FED earlier signaled to hike rates earlier than expected to tame inflation.
By 0900 GMT the Euro STOXX dropped 0.26%, Germany’s DAX weakened 0.48% while Britain’s FTSE 100 slipped 0.1%.
Futures on Wall Street pointed to a mixed open. The S&P 500 suffered its worst start to the year since 2016.
However, Asian shares on Monday gained with MSCI broad market index Asia Pacific excluding Japan gained 0.6%.
Some market strategists expect U.S. inflation which is to be released on Wednesday will show core inflation rising to its highest level in decades at 5.4%.
U.S. 10-year yield hit 1.80% in early trading, which at a level last seen in early 2020. The yield added 25 basis point last week in its biggest move since 2019.
The dollar index inched up to 95.878. The index did not find significant support from rising treasury yields.
