Global shares inched up on Monday as a U.S. holiday tempered some of the recent volatility ahead of minutes of the latest Federal Reserve meeting and data on core inflation that could add to the risk of interest rates heading higher for longer.
The dollar, which is heading for its largest one-month rise since September in February, was roughly flat on the day, giving some lift to commodity-linked currencies, thanks to a rise in the price of raw materials such as crude oil and copper.
Geopolitical tensions were ever present, with North Korea firing more missiles and talk of Russia ramping up attacks in Ukraine before Friday’s one-year anniversary of the invasion.
There were reports the White House planned new sanctions on Russia, while Secretary of State Antony Blinken on Saturday warned Beijing of consequences should it provide material support, including weapons, to Moscow.
But, with U.S. markets shut for the Presidents’ Day holiday, non-U.S. assets got some respite from last week’s relentless pressure.
The MSCI All-World index (.MIWD00000PUS) rose 0.1%, helped by modest gains in Europe, where the STOXX 600 (.STOXX) also rose 0.1%, skirting Friday’s one-week lows.
A roaring run higher in both stock and bond prices in the first six weeks of the year has come to a screeching halt, after a flurry of U.S. data suggested the world’s largest economy is holding up far better than expected.
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