Neutral start of the week for most equity markets

In London the FTSE 100 opened up 0.3% on Monday, while the region-wide Euro Stoxx 600 was 0.2% stronger. Consumer and energy stocks exerted the biggest drag at sector level. Mining stocks provided the most significant support after strong annual profit numbers from Randgold Resources, the best single gainer on the main London index with a 4% rally. Commodities trader Glencore is up 1%. The subindex tracking the Europe’s resource sector was also up 0.2% overall.

The Xetra Dax 30, which lacks resource stocks, was down 0.5% and failed to get any lift from unexpectedly strong factory orders data for December. In Japan, the broad Topix rose 0.4% as a weaker yen gave exporters a lift, while Hong Kong’s Hang Seng advanced 1%. China’s Shanghai Composite added 0.6%.

The S&P 500 looked set to toy with record territory at the opening according to futures trade. The broad Wall Street benchmark gained 0.7% on Friday in New York to close less than 1 point away from its record high set last month, after data showed the US economy added 227,000 jobs in January — exceeding forecasts. However, the unemployment rate ticked up 0.1% to 4.8%, against expectations it would remain unchanged.

In France the yield on the benchmark 10-year sovereign bond rose by 4 basis points to 1.135%, as investors cut their exposure to the debt amid growing uncertainty ahead of the country’s general election. The rise in yield, which comes as investors sell the debt, contrasted with a fall in yields for German and UK 10-year paper, down 1 basis point each to 0.4% and 1.35% respectively. US 10-year borrowing costs are down 4bp at 2.45%