World stocks inched higher, European bond yields dropped and the dollar held firm in light trading on Monday following warnings from the International Monetary Fund’s managing director that a third of the world will fall into recession in 2023.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.04%, just short of an index of global shares, which climbed 0.21%.
The pan-European STOXX 600 index (.STOXX) climbed 0.9%, retracing some of the nearly 12% it lost in 2022, bludgeoned by central banks’ aggressive monetary policy tightening.
Traders were reluctant to trust early-year starts in stock and bond moves with many markets closed for a holiday and ahead of a host of economic numbers due this week.
Inflation data from Europe, minutes from the December U.S. Federal Reserve meeting and U.S. labour market numbers were some of the highlights that Danske Bank chief analyst Piet Haines Christiansen said would be worth watching.