Wall Street opens on a positive note, oil is plunging By Reuters

By Pete Schroeder and Dhara Ranasinghe

LONDON / WASHINGTON (Reuters) – Investors in the US stock market shook off the remnants of inflation on Monday at the start of trading and sent shares higher as oil slipped.

The top three U.S. indices rose in weekly trade after falling between 0.3% and 0.7% last week. The optimistic opening came after world stocks neared recent records, as good economic data from China allayed concerns about a slowdown in the world’s 2nd largest economy.

It rose by 0.2%, up 0.16% and 0.15%.

The MSCI global stock index, which tracks shares in 45 nations, rose 0.2%.

A shocking report on U.S. inflation last week weighed on markets as investors questioned whether the Federal Reserve would be forced to raise rates earlier to deal with price pressures. But the upcoming holiday season, coupled with potential progress in returning the U.S. economy to normal after the COVID-19 pandemic, gave some analysts reason for optimism.

“We’re getting more people back into the workforce. Vaccination rates are rising, and Covid’s therapeutics are improving weekly. Supply chain disruptions will be ironed out in a timely manner,” National Securities Market Strategis Chief Art Hogan wrote in a note. “We believe the request has not been destroyed, but delayed, extending it to 2022 after the pandemic.”

However, there was also a caution in world markets, with recent COVID holders lowering sentiment in Europe and protecting safe haven bond markets.

Austria imposed a blockade on people who were not vaccinated against coronavirus on Monday as infections rose across Europe, Germany considered tougher restrictions and Britain extended its promotion program to young adults.

The expected increase in supply, higher energy costs and the fact that COVID-19 had the weight of demand, helped lower crude oil.

delivery fell 1.36% for the last time to $ 81.05 a barrel. It fell 1.39% to $ 79.67 per barrel.

Elsewhere, the United Nations Climate Conference in Scotland managed to reach an agreement on emissions, but watered down its commitment to phase out coal.

Safe Haven gold looked set to break the seven-session winning streak, with prices falling 0.22% to $ 1,859.90 an ounce.

The dollar index, which follows the greenback relative to a six-currency basket, rose 0.03%.

BANK CENTER RELAY

The response of central banks to the creation of inflationary pressures also remained the focus of the market.

Persistent supply chain bottlenecks and rising energy costs are slowing eurozone growth and keeping inflation higher than expected, European Central Bank chief Christine Lagarde said on Monday.

After a significant rise in bond yields last week, after strong U.S. inflation data, a calmer tone was restored in major bond markets.

The benchmark 10-year U.S. Treasury yield rose to a yield of 1.6059% after jumping 11 bps last week as the market positioned the Federal Reserve for early hardening.

“In terms of inflation, the term transient is not appropriate for the conditions we are seeing,” said Seema Shah, chief strategist at Principal Global Investors in London.

Graphic: https://fingfx.thomsonreuters.com/gfx/mkt/klvykdmrrvg/USD1511.PNG