The global markets are feeling the effects of rising interest rates on bonds as US treasury yields push close to three per cent. The MSCI is down 0.2 per cent and in overnight trading the Nikkei slid 0.3 per cent to 22,088 as many of its sectors fell against the rise in bonds. Analysts say a major cause of this bond spike was due to the price of crude.
But, oil is pulling back a bit from last week’s rally, down to 68.12. This comes after Donald Trump took to Twitter Friday, accusing oil producers of artificially pushing the price up.
Traders will be watching to see if the markets can bounce back as a list of big businesses are posting earnings this week. CN Rail and Google owner Alphabet will release quarterly earnings reports today. Tomorrow Expedia, Microsoft, Starbucks and Coca-Cola will be announce their earnings.