In Asian Equity Markets stocks faltered and oil prices slid on Monday as a coronavirus lockdown in Shanghai hit economic activity, while the yen extended its stomach-churning descent as the Bank of Japan stood in the way of higher yields. The equity action was muted with MSCI’s broadest index of Asia-Pacific shares outside Japan flat. The index is down 2.1 percent for the month but well above recent lows. Chinese blue chips shed 0.8 percent. Japan’s Nikkei lost 0.4 percent but is still almost 6 percent firmer for the month as a sinking yen promised to boost exporter earnings.

In Currency Markets the dollar was up on Monday morning in Asia. The Japanese yen continued a downward trend after the Bank of Japan (BOJ) stepped into the market to defend its implicit yield cap. The U.S. Dollar Index Futures that tracks the greenback against a basket of other currencies was up 0.35 percent to 99.170. Against the Japanese yen, the dollar rose 0.83 percent to 123.07. Aussie dollar was up 0.21 percent to $0.7528, while the kiwi was down 0.29 percent to $0.6950. Sterling was down 0.26 percent to $1.3154.

In US Equity Markets the S&P 500 ended higher on Friday as financial shares rose after the benchmark Treasury yield jumped to its highest level in nearly three years. The Dow rose 0.44 percent, to 34,861.24, the S&P 500 gained 0.51 percent, to 4,543.06 and the Nasdaq Composite fell 0.16 percent, to 14,169.30. The S&P 500 financials sector gave the S&P 500 its biggest boost on Friday, rising 1.3 percent, while technology and consumer discretionary sectors were the only two major sectors to end lower on the day. The utilities sector ended up 1.5 percent on the day and up 3.5 percent for the week.

In Commodities Markets crude prices rose more than 1 percent to over $120 a barrel on Friday, as traders reconciled the impact of a missile attack on an oil distribution facility in Saudi Arabia with a possible release of oil reserves by the United States. Brent crude settled up 1.4 percent, to $120.65 a barrel and U.S. West Texas Intermediate (WTI) crude ended 1.4 percent higher, at $113.90. Spot gold fell 0.3 percent to $1,952.60 per ounce. Spot silver fell 0.5 percent to $25.37 per ounce. Platinum fell 2.1 percent to $999.06 per ounce, and palladium was down 5.4 percent at $2,387.75.

In European Equity Markets stocks ended a choppy session slightly higher on Friday but were down on the week as investors worried about the fallout from the Russia-Ukraine conflict, while a rally in the commodities sector kept a lid on declines. The pan-European STOXX 600 index added 0.1 percent, with losses for banks and some defensive stocks offsetting gains in energy, basic materials and technology names. Telecom Italia rose 1.8 percent as sources said CVC Capital Partners and rival private equity investors are looking at a potential investment in the services arm of the company.

In Bond Markets U.S. Treasury yields rose on Friday, with the benchmark 10-year note surging to nearly three-year highs, as the market grappled with high inflation and a Federal Reserve that could easily spark a downturn as it aggressively tightens policy. Ten-year Treasury yields were up 14.7 basis points to 2.488 percent, after earlier rising above 2.50 percent for the first time since May 2019. The 2-year yield rose 16 basis points to 2.284 percent – a rate also last seen in early May 2019. The yield on the 30-year Treasury bond was up 9 basis points to 2.602 percent.