UK 30-year bond yields hit 27-year high, sterling slides

Bond

Forex

Summary:

UK 30-year gilt yields surged to 5.71%, their highest since 1998, after a government reshuffle raised doubts over fiscal credibility. Sterling fell 1%. European bond yields also hit multi-year highs on debt concerns.

UK 30-year bond yields hit their highest level in 27 years on Tuesday after the government’s surprise reshuffle.

The 30-year gilt yield hit 5.71% - the highest since 1998. Bond yields move inversely to bond prices.

Meanwhile, sterling was down 1% against the dollar at 1.3415, on track for its biggest one-day decline since April.

Kathleen Brooks, research director at XTB, said the key driver of weakness in the bond market could be a delayed reaction to the government reshuffle on Monday.

"The Prime Minister beefed up his economic team in the lead up to the budget. This has not gone down too well, with concerns that there is still a strategy void when it comes to the economy, as the government struggles to deliver the growth that it promised, at the same time as borrowing surges," she said.

Brooks said there could also be some concern that Chancellor Rachel Reeves is being "managed out".

"The last time there was a threat to Reeves’ position, back in early July, bond yields jumped as the market worried that she could be replaced by a more left-leaning member of the Labour party," she noted.

Neil Wilson, investor strategist at Saxo UK, said: "Gilt yields in the UK rose after the prime minister reshuffled the deck, seemingly sidelining his iron chancellor Reeves by poaching her deputy. If the Treasury won’t break the rules, then perhaps Number 10 can? The market move was a sign that investors do not have confidence the Treasury will stick to its strict borrowing rules.

"Long-dated gilt yields are now trading close to 27-year highs again with the 30-year above 5.7%. 30-year yields at their highest in almost three decades is not a good look for the Labour government and underscores that there is little fiscal or economic credibility left. Sterling has shipped a mighty 1% or more this morning as a result."

It wasn’t just UK bond yields making sharp moves on Tuesday, however, with European bonds yields also jumping to multi-year highs.

Yields on 30-year German, French, and Dutch bonds reached their highest levels since the Euro crisis in 2011.

Deutsche Bank's Jim Reid said: "Even in orderly markets, we’re seeing a slow-moving vicious circle: rising debt concerns push yields higher, worsening debt dynamics, which in turn push yields higher again.

"The immediate catalyst has been the upcoming no-confidence vote in the French government, scheduled for Monday, 8 September. French 10-year yields rose 2.5bps to 3.53% yesterday- their highest since mid-March - despite no fresh news."

Source: sharecast

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Warren Takunda

Economic

London stocks were still weaker by midday on Tuesday, while long-term borrowing costs hit a 27-year high and sterling tumbled.

The FTSE 100 was down 0.5% at 9,153.67, while the 30-year gilt yield hit 5.71% - the highest since 1998. Bond yields move inversely to bond prices.

At the same time, sterling was down 1.2% against the dollar at 1.3382.

Kathleen Brooks, research director at XTB, said the key driver of weakness in the bond market could be a delayed reaction to the government reshuffle on Monday.

Brooks said there could also be some concern that Chancellor Rachel Reeves is being "managed out".

It wasn’t just UK bond yields making sharp moves on Tuesday, however, with European bonds yields jumping to multi-year highs.

In equity markets, retailers were under the cosh, with Marks & Spencer, Dunelm and B&M all in the red.

British Gas owner Centrica fell even as it said two UK nuclear power stations in which it has a 20% share had been given life extensions of a year. Heysham 1 and Hartlepool are now expected to generate electricity until March 2028, one year later than previously expected.

British American Tobacco was knocked lower by a downgrade to ‘underperform’ from ‘sector perform’ at RBC Capital Markets, which said profit expectations for the company's New Categories are "seriously overblown".

Ithaca Energy tumbled after major shareholders Delek and Eni sold just over 49.6m shares in the company in a placing.

Housebuilder Taylor Wimpey was knocked lower by a downgrade to ‘neutral’ at Bank of America, with Barratt Redrow, Persimmon and Berkeley also lower.

On the upside, precious metals miner Fresnillo shot to the top of the FTSE 100, while gold miner Hochschild also gained as gold prices hit a new all-time high.

Harbour Energy was boosted by an initiation at ‘overweight’ by JPMorgan, whose stance was underpinned by "scale-driven cost reductions, free cash flow resiliency, and a strong balance sheet" which "leaves runway for an additional buyback program in 2026".

Source: Sharecast

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Glendon

Economic

Forex

Global bond markets came under pressure in European session, led by a sharp selloff in long-dated UK gilts. Yield on UK 30-year surged past 5.65% to its highest in 27 years, breaking above the peak set in April. Investors are increasingly concerned that Prime Minister Keir Starmer’s government may abandon fiscal discipline ahead of the upcoming Budget.

French bonds also came under strain, with the 30-year yield climbing to its highest since 2009 as Prime Minister François Bayrou scrambles to shore up parliamentary support ahead of next week’s confidence vote. U.S. Treasury yields are climbing in tandem, with the 30-year approaching 5%—a level last seen in July.

The catalyst in the UK was Starmer’s reshuffle of his Downing Street team, including the appointment of Darren Jones as chief secretary to the Treasury to manage delivery of priorities. The changes, intended to strengthen economic governance ahead of the Budget, have instead rattled markets, with traders worried about a lack of coherent strategy to revive growth while borrowing continues to swell.

Adding to the unease, speculation has resurfaced that Chancellor Rachel Reeves could be sidelined. Markets have been sensitive to such risks before—when questions arose over Reeves’ position in July, gilt yields spiked on fears she might be replaced by a more left-leaning figure less committed to fiscal prudence. The latest political maneuvering has revived those anxieties.

The immediate market reaction suggests little confidence in the government’s direction. Investors are interpreting the moves as paving the way for more gilt issuance, higher inflation, and weaker commitment to fiscal rules. Expectations are building that the Budget could lean heavily on borrowing to fund spending promises rather than tax hikes, amplifying the pressure on long-dated debt.

In currency markets, Sterling has been the weakest performer of the day, weighed down by fiscal and political concerns. Yen and New Kiwi followed on the downside, while Ddollar rebounded on support from rising Treasury yields. Loonie and Swiss Franc also gained, while Euro and Aussie traded mid-pack.

In Europe at the time of writing, FTSE is down -0.60%. DAX is down -1.57%. CAC is down -0.31%. UK 10-year yield is up 0.077 at 4.831. Germany 10-year yield is up 0.044 at 2.794. Earlier in Asia, Nikkei rose 0.29%. Hong Kong HSI fell -0.47%. China Shanghai SSE fell -0.45%. Singapore Strait Times rose 0.52%. Japan 10-year JBG yield fell -0.019 to 1.606.

ECB’s Schnabel sees no need for more easing, eyes higher inflation risks

ECB Executive Board member Isabel Schnabel pushed back against further monetary easing, telling Reuters that policy maybe already “mildly accommodative” and that she sees no case for another rate cut at present. She noted that the economy has held up better than expected, underpinned by robust domestic demand and bolstered by a “significant fiscal impulse” from Germany’s investment plans in infrastructure and defense.

Schnabel also argued that global tariffs imposed by the Trump administration are likely “on net inflationary”, even without EU retaliation. “If you have an increase in input prices globally due to tariffs, and these propagate through global production networks, this will increase inflationary pressures everywhere,” she said.

Schnabel also dismissed concerns that a stronger Euro might weigh heavily on price dynamics. She said currency appreciation tied to improving Eurozone growth prospects would have a more limited pass-through, adding, “I am less concerned about exchange rate developments.” She stressed that she sees little chance of inflation expectations de-anchoring to the downside after years of price overshoots.

Looking forward, Schnabel warned that a more fragmented world with tighter supply chains, higher fiscal spending, and aging populations is structurally inflationary. In such an environment, she argued, “central banks around the world start to hike interest rates again may come earlier than many people currently think.”

Eurozone CPI ticks up to 2.1%, core stays 2.3%

Eurozone headline inflation inched higher in August, with the flash CPI rising to 2.1% yoy from 2.0% yoy, in line with expectations. The increase came largely from a slower drag in energy prices, though food and services inflation moderated slightly from July levels.

Core CPI, excluding food, energy, alcohol, and tobacco, remained unchanged at 2.3% yoy, defying expectations of a slight dip to 2.2% yoy. The measure has now held steady since May.

By component, food, alcohol and tobacco continued to drive the highest annual inflation rate at 3.2%, followed by services at 3.1%. Non-energy industrial goods stayed muted at 0.8%, while energy prices fell -1.9% from a year earlier. The data suggest inflation continues to stabilize near the ECB’s 2% target.

BoJ’s Himino: Risk of larger-than-expected tariff impact warrants focus

BoJ Deputy Governor Ryozo Himino warned in a speech today that U.S. trade policies are likely to weigh on Japan’s economy, with overseas slowdowns and weaker corporate profits feeding through domestically. While accommodative financial conditions should cushion the hit, Himino said the baseline scenario is for Japan’s growth to “moderate,” with downside risks from tariffs deserving greater attention.

Looking further ahead, Himino said Japan’s growth should eventually recover as overseas economies return to a more stable expansion path. But in the near term, the tariff shock remains the key uncertainty, with the risk of a “larger-than-expected impact” now seen as more pressing than the chance of a mild outcome.

On inflation, Himino noted that headline prices remain above the BoJ’s 2% target, by a “considerable margin”, due in part to surging rice prices and spillovers to other goods. However, he stressed headline inflation is expected to “decline in due course” as food-related effects fade. Underlying inflation, meanwhile, remains below target but is steadily rising, despite some potential “temporary halts”, supported by a wage–price feedback loop.

Summing up, Himino said the BoJ’s baseline scenario assumes headline inflation will cool, while core prices continue to edge toward 2%. If that path holds, it would be appropriate for the central bank to keep raising rates gradually, fine-tuning monetary accommodation in line with improving economic activity and stable price gains.

EUR/GBP Mid-Day Outlook

Daily Pivots: (S1) 0.8632; (P) 0.8652; (R1) 0.8665;

EUR/GBP’s strong rally today solidifies the case that corrective pattern from 0.8752 has completed at 0.8595. Intraday bias is back on the upside for retesting 0.8752. Firm break there will resume whole rally from 0.8221. Next target is 0.8867 fibonacci level. For now, further rise is expected as long as 0.8636 support holds, in case of retreat.

In the bigger picture, the structure from 0.8221 medium term bottom are not impulsive enough to suggest that it’s reversing the down trend from 0.9267 (2022 high). But even if it’s a correction, further rise could still be seen to 61.8% retracement of 0.9267 to 0.8221 at 0.8867. Nevertheless, sustained trading below 55 W EMA (now at 0.8513) will argue that the pattern has completed and bring retest of 0.8221 low.

Source: ACTIONFOREX

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Adam

Stocks

Economic

MARKET WRAPS

Indexes in Europe were mixed and gold prices hit a record, as Trump's bid to reshape the Federal Reserve sowed extra uncertainty about prospective interest-rate cuts.

Pepperstone said the trend in gold prices reflected uncertainty surrounding factors including resurging inflation concerns and anticipation ahead of Friday's nonfarm payrolls report.

"In this sense, gold has become a barometer of market unease and uncertainty across inflation, monetary policy and employment."

In the U.K. yields on 30-year gilts rose to their highest level since 1998 and sterling fell to a nearly four-week low against the euro and a nearly one-week low against the dollar, as investors worried about the sustainability of U.K. public finances.

"We're seeing a slow-moving vicious circle: rising debt concerns push yields higher, worsening debt dynamics, which in turn push yields higher again," Deutsche Bank said.

Concerns about the country's public finances grew after the Prime Minister reshuffled members of his cabinet on Monday.

Stocks to Watch

Societe Generale's car-leasing unit Ayven--of which it owns 53%--could contribute nearly 1 billion euros to the bank's bottom line in the coming years, Jefferies said, adding that the purchase of minorities could lift group return on tangible equity to 13% in 2027.

U.S. Markets:

Stock futures edged down as investors await a ruling on whether Trump's bid to fire Fed governor Lisa Cook is legitimate.

Meanwhile, Trump has nominated Stephen Miran, a close adviser who has backed rate cuts, to a seat on the Fed's board. If Miran is confirmed quickly enough after a hearing on Thursday, he could join in time for the September policy meeting.

Forex:

The euro fell against the dollar as investors awaited eurozone inflation data and was likely to continue trading within a range of $1.1650-$1.1750 range for now, ING said, adding that the biggest risk to the euro-dollar exchange rate was probably long positioning.

"But in theory U.S. jobs releases this week still have the potential to unlock some upside."

Lombard Odier said the dollar was likely to weaken further against major and emerging market currencies and forecast EUR/USD at 1.22 a year from now.

Previously extended short positions on the dollar have normalized, it said, and the likelihood of the Fed cutting rates at a time of policy rate stability for other major central banks (except for the BOE) will diminish the dollar's yield advantage against both major and emerging currencies.

Also expected emerging market economic resilience and equity outperformance might drive further flows into EM assets, supporting EM currencies, it added.

Bonds:

Treasury yields rose across maturities after Monday's Labor Day holiday, driven by the long-end of the curve.

This week's drivers of the Treasury market include the ISM manufacturing print on Tuesday and Friday's labor market data.

"Our base case is for Friday's nonfarm payroll print to come in broadly in line with consensus, leaving expectations for a 25 basis point Fed cut largely intact," Danske Bank said.

Lombard Odier continued to prefer European high yield corporate bonds over the U.S., supported by an improved growth outlook in Europe and better market sentiment.

"We maintain our overweight in investment grade corporate bonds, supported by attractive yields and solid fundamentals, coupled with demand outstripping supply."

Current yields remained comfortably above their long-term averages, and investor flows into the asset class also remained strong, underpinned by solid demand for new issues, it added.

Thirty-year Bund yields continued to rise, extending Monday's move and hitting their highest level since 2011.

Energy:

Oil prices rose, although locked in a relatively narrow range, as escalating Ukrainian drone strikes against Moscow's energy infrastructure heightened concerns over Russian supply disruptions.

"August saw the most severe wave of Ukrainian drone strikes on Russian energy infrastructure since mid-2022, with up to 10 refineries hit," Kpler said.

"While repairs are underway, past patterns suggest lasting impacts into October."

The attacks triggered a sharp drop in crude-processing volumes at Russian refineries, according to Kpler, which said domestic shortages were already materializing.

"The likelihood of reduced refined product exports--especially light and Middle distillate products--is increasing."

Kpler cut its 2025 forecast for Russian refining throughput by 60,000-65,000 barrels a day from earlier projections.

Gas

European natural-gas prices rose slightly as traders monitored flows out of Norway--the region's single largest supplier--amid seasonal maintenance works.

"Some work at the Troll field has been extended by six days," ING said.

Daily Norwegian gas flows to Europe have fallen below 240 million cubic meters a day from around 340 million cubic meters a day in early August, it added.

Metals:

Gold hit a record above $3,500 per ounce in Asia, topping April's peak.

The rally reflected a softer dollar and strong central-bank and institutional demand as investors rotate out of Treasurys, Swissquote Bank said.

Central banks' gold allocations even surpassed their Treasury holdings this year, it added.

IG market said investors were continuing to flock to the safety provided by hard assets and precious metals.

Julius Baer said after Trump moved to fire a Fed governor last week, gold rose and silver traded above $40 an ounce for the first time in 14 years and that the backdrop remained favorable.

It reiterated a constructive view on gold and remained neutral on silver due to a less compelling risk/reward relationship.

Sliver

Spot silver prices maintained their 14-year high.

EMEA HEADLINES

Nestlé Fires CEO Following Probe of Romantic Relationship With Subordinate

Nestlé said it dismissed Chief Executive Laurent Freixe with immediate effect following an investigation into an undisclosed romantic relationship with a direct subordinate that breached the group's code of conduct.

The Swiss maker of Nescafé coffee and Purina pet food said Monday that its board had ordered the probe overseen by Chairman Paul Bulcke and lead independent director Pablo Isla, with the support of independent outside counsel.

Monte Dei Paschi Raises Mediobanca Offer by EUR750 Million in Cash

Italy's Banca Monte dei Paschi di Siena sweetened its takeover bid for peer Mediobanca by adding 750 million euros ($878.4 million) in cash, days before the offer period for the hostile bid is coming to an end.

Monte dei Paschi on Tuesday said it would pay 0.90 euros a share for each Mediobanca share tendered, on top of its original offer of 2.533 of its own shares for each Mediobanca share.

Russia Intensifies Strikes in Ukraine, Defying Trump's Shifting Deadlines for Peace

Russian President Vladimir Putin is expanding his strikes on Ukrainian cities, threatening escalation against Kyiv's backers and pressing for further military gains in defiance of President Trump's deadlines to enter serious peace talks.

Ukrainian civilians have suffered an uptick in deadly missile and drone strikes in the wake of an inconclusive summit between Trump and Putin in Alaska last month. Moscow's forces have also pushed troops forward on the battlefield, albeit slowly, at the expense of men and materiel in a dogged campaign to take territory and sap the strength from Ukraine's army.

OPEC+ Set to Hold Output Steady as Oil Glut Anxiety Looms

Key members of OPEC+ are set to meet Sunday to discuss production policy as the market braces for a global supply glut that is expected to put pressure on prices. However, excess supply has yet to show in inventory data or in the crude futures structure.

The Organization of the Petroleum Exporting Countries and its allies agreed to fully unwind 2.2 million barrels a day of voluntary cuts a year ahead of its original plan, and is now widely expected to hold policy steady as it evaluates its next steps amid an uncertain macroeconomic backdrop.

GLOBAL NEWS

Only a really big jobs report might stop the Fed from cutting interest rates. Don't count on it.

Perhaps the only thing that might stop the Federal Reserve from cutting interest rates in a few weeks would be a surprisingly strong U.S. jobs report. Just don't count on it.

Hiring has slowed sharply since the spring after the Trump administration launched the biggest trade wars in decades. Even with those trade disputes dying down, businesses have been slow to add new employees.

The Israeli Army Is Struggling to Get Reservists to Show Up

TEL AVIV-As the Israeli military prepares for a new offensive on Gaza City, military commanders are struggling to find enough reservists willing to report for duty.

Israeli troops are exhausted after nearly two years of fighting on several fronts, and more are questioning the purpose of the war. As the military is now calling up some 60,000 reservists from their jobs, studies and families to support the new mission, many are saying they are at a breaking point, according to more than 30 officers and soldiers who were interviewed by The Wall Street Journal.

Xi Revisits WWII to Boost China in Great-Power Rivalry With U.S.

Eight decades after the end of World War II, China's Communist Party is still battling for recognition of its role in securing final victory and its claims to the territorial spoils-amid a bruising rivalry with the U.S.

Chinese leader Xi Jinping has directed an expansive propaganda campaign in recent months to trumpet the party's account of how it helped defeat Japan. On Wednesday, he will oversee a grand parade of troops, missiles and tanks rumbling through central Beijing to commemorate the 1945 victory.

Source: morningstar

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Winkelmann

Forex

Economic

Rothschild & Co. is set to take over the United Arab Emirates subsidiary of the Liechtensteinische Landesbank, bolstering its presence in one of the world’s hottest markets for wealth management.The so-called referral agreement with LLB will add assets worth about 1 billion Swiss francs ($1.2 billion) to Rothschild’s Dubai-based franchise, according to a statement on Tuesday. LLB will focus on its locations in Liechtenstein, Switzerland, Austria and Germany, while recommending Rothschild & Co. to clients in the United Arab Emirates.

“In recent years, we have experienced continuous strong growth in our global Wealth Management and Middle East businesses,” Rothschild & Co. Executive Chairman Alexandre de Rothschild said in a separate statement. The latest deal “represents our high conviction in the UAE’s potential, given the increasing concentration of both regional and global wealth here.”The Paris-based bank opened a wealth management office last year in Dubai, where it will have about 25 employees after the agreement with LLB. The move will help the firm step up its regional offerings across public and private markets, as well as corporate advisory.

Other global firms have also bolstered their presence in the region in the past few years to capitalize on the burgeoning market for the ultra-rich. Citigroup Inc., Deutsche Bank AG, UBS AG and JPMorgan Chase & Co. have recruited private bankers while Azura Partners, a wealth manager founded by a former Julius Baer Group Ltd., is relocating its headquarters to Abu Dhabi from Monaco.Rothschild’s move is also another sign that major banks have shrugged off the geopolitical instability that marked the region in previous months. The world’s richest people and their wealth managers continue to flock to the region, lured by low taxes, business-friendly regimes and year-round sunshine.

Still, some firms have faced issues in the region, including HSBC Holdings Plc. Its Swiss private bank is ending relationships with wealthy Middle Eastern clients as part of efforts to lower its exposure to individuals it deems high-risk, Bloomberg News has reported.

Source: Bloomberg Europe

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Golden Gleam

Commodity

Technical Analysis

Gold prices extended their rally on Tuesday, reaching 3,490 USD per troy ounce, approaching an all-time high. The metal found support in growing expectations of a Federal Reserve rate cut as soon as September, along with a concurrent weakening of the US dollar.

Last week’s US inflation report bolstered hopes of a shift towards a more accommodative monetary policy. Markets are now pricing in an almost 90% probability of a 25-basis-point rate cut. Officials from the central bank itself reinforced this view after Mary Daly, President of the Federal Reserve Bank of San Francisco, openly expressed her support for such a move.

The key event risk this week will be the US Non-Farm Payrolls (NFP) report, expected to define the scale and pace of the upcoming rate-cutting cycle.

US trade policy is also creating substantial uncertainty. An appeals court ruled that the majority of tariffs imposed by Donald Trump were illegal, but kept them in force until 14 October to allow for an appeal to the Supreme Court. This political uncertainty is further fuelling demand for safe-haven assets.

Technical Analysis: XAU/USD

H4 chart:

The XAU/USD pair completed an upward wave towards the 3,508.65 USD level. The focus now shifts to a potential corrective wave towards the breached resistance level, which could now function as support. The target for this correction is 3,469 USD. Against the backdrop of the Federal Reserve’s supportive economic outlook, a test of this support could see prices stage another rally, with the first target likely being the 3,530 USD mark. This scenario is technically supported by the MACD indicator, whose histogram and signal line remain above zero and continue to rise, confirming the potential continuation of the upward trend. However, minor corrections cannot be ruled out.

H1 chart:

After testing the 3,500 USD level, the price is forming a corrective wave. The target for this pullback could be the support at 3,469 USD. Testing this level could pave the way for the resumption of the upward trend. This outlook is technically supported by the Stochastic oscillator, whose signal lines, after a period of increase, are now declining towards 50.0.

Conclusion

A combination of dovish Fed expectations, a softer dollar, and geopolitical trade uncertainties continues to support gold prices. The technical picture suggests a brief period of consolidation or a shallow pullback is likely before a potential retest of record highs.

Source: ACTIONFOREX

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Stocks

The price of gold hit a new record and world shares were mostly lower on Tuesday after U.S. markets were closed for the Labor Day holiday.

The spot price of gold, traditionally a haven for investors in times of uncertainty, climbed as high as $3,578.40 per ounce early Tuesday. That surpassed an intraday record of $3,509.90 an ounce set in April. It later slipped back a bit, gaining 1.1% to $3,549.10 per ounce.

President Donald Trump’ s challenges to the U.S. Federal Reserve and other institutions have shaken faith in the U.S. dollar, prompting a shift into other investment options such as gold and silver, analysts say.

The price of silver was up 1.8% at $41.46 an ounce on Tuesday, surpassing $40 an ounce for the first time since 2011.

“That’s not just a price tick; it’s the market’s confession that faith in fiat is wobbling,” Stephen Innes of SPI Asset Management said in a commentary. He noted that the price of the precious metal has nearly doubled since early 2023.

Investors have been shifting away from U.S. Treasuries for years but that shift has accelerated this year due to worries over U.S. government debt, trade tensions and geopolitical risks, said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.

In early European trading, Germany’s DAX dropped 1.1% to 23,767.08, while the CAC 40 in Paris was nearly unchanged at 7,707.09. In Britain, the FTSE 100 declined 0.4% to 9,158.78.

The future for the S&P 500 lost 0.5% while that for the Dow Jones Industrial Average was 0.4% lower.

Since Wall Street was shuttered on Monday, analysts said traders also were still focusing on the potential implications of Friday’s ruling by a U.S. court against Trump’s higher tariffs on many countries around the world.

In Tokyo, the Nikkei 225 picked up 0.3% to 42,310.49 as investors snapped up bargains following recent losses. An auction of 10-year Japanese government bonds was expected to test the stability of that market.

Markets in China fell back from recent gains. Hong Kong’s Hang Seng shed 0.5% to 25,496.55, while the Shanghai Composite index lost 0.5% to 3,858.13.

South Korea’s Kospi advanced 0.9% to 3,172.35, while the S&P/ASX 200 in Australia gave up 0.3% to 8,900.60.

India’s Sensex rose 0.4% and the SET in Bangkok gained 0.4%.

The U.S. Court of Appeals for the Federal Circuit ruled Friday, 7-4, that Trump went too far when he declared national emergencies to justify imposing sharply higher import taxes on almost every country on earth.

The ruling largely upheld a May decision by a specialized federal trade court in New York, but it rejected part of that ruling striking down the tariffs immediately, giving the Trump administration time to appeal to the U.S. Supreme Court.

Updates on U.S. durable goods orders, manufacturing, jobless claims and other data that may provide insights into how the economy is holding up under the higher tariffs are due this week. European manufacturing data and a preliminary consumer price index reading for the countries using the euro also are on the agenda.

In other dealings early Tuesday, U.S. benchmark crude oil gained $1.86 to $65.87 per barrel. Brent crude, the international standard, advanced $1.22 to $69.37 per barrel.

The U.S. dollar rose to 148.54 Japanese yen from 147.18 yen. The euro fell to $1.1635 from $1.1711.