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(Kitco News) – World bond markets are seeing keener selling interest to start the trading week, led by U.K. gilts, which in turn have been pressured by a weakening British pound. There are growing concerns about the world's major central banks starting to tighten their monetary policies, which in turn should stoke inflationary price pressures. That's bearish for bond markets.
The weaker global bond market prices led to price weakness in global equity markets Monday. A feature in Asian stock market trading was casino-related shares dropping sharply after Chinese authorities arrested 18 people from Crown Resorts and charged them with illegal gambling. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
In overnight news, the Euro zone September consumer price index was up 0.4%, month-on-month and up 0.4%, year-on-year, too. The readings were right in line with market expectations.
Nymex crude oil prices are near steady Monday morning and trading just above $50.00 a barrel. The other key "outside market" finds the U.S. dollar index trading slightly lower.
U.S. economic data due for release Monday includes the Empire State manufacturing survey, and industrial production and capacity utilization.
Also, Federal Reserve Vice Chairman Fischer speaks at a luncheon in New York today. His remarks could be market-sensitive as traders and investors continue to handicap the timing of next rate hike from the Fed.
Kitco.com live 24 charts show the spot gold market traded in a fairly narrow range overnight and remains above key support, hitting resistance at $1,256.90 and support at $1,250.20 an ounce.
By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org
Follow Jim Wyckoff @jimwyckoff