U.S. Markets closed

Global stocks steady as rout on markets eases

Tom Rees
Stocks in Europe and Asia climbed higher in the broad-based global rebound - Bloomberg

  • FTSE 100 rebounds 1pc as global stocks rout cools; Dax and CAC 40 climb in broad-based rally in Europe
  • US futures contracts indicate stronger start on Wall Street
  • Global stocks plunged last week amid fears that resurgent inflation will force central banks to push up interest rates
  • Acacia Mining scraps dividend after posting $700m loss; FTSE 250 gold miner's production hit by dispute with Tanzanian Government

8:54AM

Stocks rebound but Government bond yields continue to tick higher

Normal service resumed?

Stocks are back on the rise this morning as the ship steadies on markets but Government bond yields are ticking higher on continued investor jitters over inflation.

The US 10-year Treasury yield now has the 3pc barrier in its sights after pushing up to 2.889pc, its highest level since 2014. 

Those inflation fears could be exacerbated by CPI figures due in the US and UK in the coming days but economists forecast prices to have cooled in both countries in January.

Traders that have "bought the dip" were quickly punished last week but "the current rally is a stock-pickers paradise, with the opportunity to pick up potential bargains", according to Interactive Investor's Rebecca O'Keeffe.

She added:

"The key event of the week is US Consumer Price data on Wednesday, with investors anxious to determine whether the inflation fears that have helped to drive recent market moves have been overdone or if these concerns are justified."

8:38AM

Barclays Bank faces fresh SFO charges over 2008 fundraising

The SFO said on Monday that a date for the first court appearance in relation to the charge against Barclays Bank will be "set in due course"

The Serious Fraud Office (SFO) has charged Barclays Bank over a $3bn (£2.2bn) loan given to the State of Qatar as part of a side deal linked to its emergency fundraising in 2008.

It extends a charge brought against the parent firm for "unlawful financial assistance" last July.

At the time, the SFO had not yet decided whether to charge the Barclays Bank unit over the loan as well. Barclays Bank has now been charged with the same offence.

Both Barclays and its bank unit have said they will defend themselves against the charges.

Read the full report here

8:28AM

Agenda: Global stocks steady as rout on markets eases

With trading in Japan closed, the rest of Asia enjoyed a modest rebound this morning

Global stocks are steadying this morning after last week's markets rout plunged the Dow Jones and S&P 500 into correction territory amid fears that rising inflation will force central banks to push up interest rates.

After shedding nearly 5pc of its value in last week's sell-off, the FTSE 100 is back on the rise, led 0.9pc higher by stronger commodity stocks as oil and metal prices claw back ground lost last week.

The DAX in Frankfurt and CAC 40 in Paris are climbing amid a broad-based rebound in Europe while futures contracts suggest that stocks in the US will also climb higher at the opening bell in New York this afternoon.

The corporate calendar is looking a little light this morning with Acacia's $700m loss the sole set of earnings for traders to digest.

The precious metal miner's production and share price have been slashed by the Tanzanian government tightening its grip on the local mining sector by banning gold and copper ore exports and implementing punitive taxes.

No major economics releases are due this morning as traders brace themselves for inflation figures from the UK and US in the coming days.

Full-year results: Acacia Mining