Following yesterday’s horrific events in Manchester, how have the global stock markets reacted?

On Monday evening, 22 people were killed, more than 50 wounded and dozens are still unaccounted for in an explosion at the end of a concert by U.S. singer Ariana Grande in Manchester.

In other news, the former White House national security adviser Michael Flynn declined on Monday to comply with a subpoena from the Senate Intelligence Committee as it investigates possible Russian interference in the 2016 U.S. election.

In the Euro zone finance ministers failed to agree on debt relief for Greece with the International Monetary Fund on Monday and did not release new loans to Athens, but came close enough in talks to aim for both deals at their next meeting in three weeks.


Currencies

RAKBANK advised that sterling was down 0.2% at 144.36 yen after weakening to as much as 144.06. It was little changed against the dollar at $1.2992 and a touch lower at 86.60 pence per euro. The dollar was down 0.2% at 111.10 yen after a dip to 110.860 and the euro slid 0.2% to 124.860 yen. The euro was 0.1% higher at $1.1247 after touching $1.1264 overnight, its highest since Nov. 9. The dollar index lost 0.1% to 96.882. The Australian dollar rose 0.1% to $0.7489 and the New Zealand dollar nudged up 0.2% to a one-month high of $0.7010.

Treasuries/Rates

U.S. Treasury yields were marginally higher on Monday as light selling tied to this week’s government and corporate bond supply overrode safe-haven bids underpinned by worries about probes into U.S. President Donald Trump’s 2016 campaign. The benchmark 10-year Treasury yield was 2.252%, up 0.7 basis point from Friday, while the 30-year yield was 2.914%, 0.8 basis point higher. Last Thursday, the 10-year yield hit a one-month low at 2.180%, while the 30-year yield fell to 2.874%, the lowest level since April 21, Reuters data showed.

 

 

Commodities/Energy

Gold prices were steady on Tuesday despite a blast at a concert in Manchester, that left at least 22 people dead in what British police said was being treated as a terrorist incident. The metal has been supported as the dollar weakened against the euro amid political tensions in the U.S. due to the ongoing controversies involving President Donald Trump. Spot gold was up 0.1% at $1,261.62 per ounce. U.S. gold futures were flat at $1,261 an ounce. OPEC heavyweights Saudi Arabia and Iraq agreed on Monday on the need to extend a global cut in oil supply by nine months in an effort to prop up crude prices, removing a potential stumbling block as producing countries prepare to meet this week. Brent futures were trading 0.6% higher at $53.92 a barrel.

Global Equities

U.S. stocks rose on Monday, boosted by technology shares and by defense companies, which gained after the United States and Saudi Arabia signed a multi-billion dollar arms deal. The Dow Jones Industrial Average closed up 89.99 points, or 0.43%, to 20,894.83, the S&P 500 gained 12.29 points, or 0.52%, to 2,394.02 and the Nasdaq Composite added 49.92 points, or 0.82%, to 6,133.62. The S&P 500 posted 45 new 52- week highs and 3 new lows; the Nasdaq Composite recorded 102 new highs and 60 new lows. Britain’s FTSE futures up 0.1%, while S&P E-mini futures slipped 0.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% on Tuesday to be near its highest level since June 2015. Japan’s Nikkei slipped 0.1%. Korean shares surged 0.9% to an all-time high. Chinese shares reversed earlier losses and were up 0.4%. Hong Kong’s Hang Seng rose 0.3% to its highest level since July 2015.

 

Regional Updates

Egypt’s stock market tumbled in heavy trade on Monday after the central bank unexpectedly raised key interest rates overnight, while Qatar outperformed in an otherwise quiet Gulf. Cairo’s blue-chip index dropped 2.5% after the central bank hiked its overnight deposit rate and overnight lending rate by two percentage points – its first increase since a hike of 3 % points in November. Qatar’s index added 0.8% with the main support coming from blue chips that are constituents of the MSCI emerging market index. Islamic lender Masraf Al Rayan added 1.6%. The Saudi Arabian index closed almost flat after it had gained 0.8% on Sunday following news that Saudi and U.S. companies had signed over $200 billion of deals during President Donald Trump’s visit to the kingdom. In the United Arab Emirates, Abu Dhabi’s index fell 0.4% while Dubai’s index edged up 0.1% on the back of Gulf Navigation, which jumped 5.6%.

 

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