International Business: Shares skid, yields rise further before ECB, US inflation test – Gulf Digital News

International Business: Shares skid, yields rise further before ECB, US inflation test – Gulf Digital News

Shares slid and bond yields climbed on Monday as caution gripped markets ahead of central bank meetings and U.S. inflation data, while the euro managed only a brief gain on relief the far right did not win the first round of French presidential elections.

French leader Emmanuel Macron and far right challenger Marine Le Pen qualified on Sunday for what promises to be a tightly fought presidential election runoff on April 24.

A Le Pen victory could send shockwaves through France and Europe in ways similar to Britain's vote in 2016 to leave the European Union (EU). The first round result was close enough to leave the euro barely changed at $1.0883, after an initial pop to $1.0950.

The mood in equity markets was cautious, with MSCI's broadest index of Asia-Pacific shares outside Japan falling 1.3%.

Japan's Nikkei dropped 0.7%, having shed 2.6% last week, while Chinese blue chips lost 2.4%.

S&P 500 stock futures eased 0.6% and Nasdaq futures 0.7%. EUROSTOXX 50 futures lost 0.8%, and FTSE futures 0.4%.

Earnings season kicks off this week with JP Morgan, Wells Fargo, Citi, Goldman Sachs and Morgan Stanley all due to report.

Up to now, Wall Street has fared surprisingly well in the face of a vicious selloff