SYDNEY (Reuters) – Asian shares rallied on Monday courtesy of gains in China which also helped U.S. stock futures pare early losses, while rising Treasury yields lifted the dollar to a near-three-year peak against the Japanese yen.
Nasdaq futures and S&P 500 futures were both down around 0.1%, but well above early lows. EUROSTOXX 50 futures dipped 0.1% and FTSE futures held steady.
Oil prices extended their bull run, with gains across the energy complex stoking inflation concerns.
“Bond yields continue to push higher, inflation expectations are rising and monetary tightening in various guises is becoming more prevalent,” said ANZ analysts in a note.
“The global chips shortage will extend well into next year, adding further uncertainty to uneven recoveries,” they said. “Add in energy shortages, and the economic landscape is materially more sober than the optimism that accompanied the early stages of global…