World shares traded cautiously on Monday after a mixed U.S. jobs report triggered a rally in fallen bonds, but new hurdles lay ahead in the shape of U.S. and Chinese inflation figures due later this week.
MSCI's broadest index of shares edged lower in thin trade, after losing 2.6% last week. European shares opened largely flat, except for UK stock markets which opened lower, weighed down by heavyweight miners.Chinese blue chips eased 0.9% with investors disappointed at the lack of stimulus from Beijing. The Nikkei rose 0.2%.
S&P index futures added 0.5%, while Nasdaq futures ticked up 0.6%. With around 90% of S&P 500 earnings reported, results are 4% better than consensus estimates, with more than 79% of companies beating forecasts.
U.S. consumer price data is forecast to show headline inflation picking up slightly to 3.3%, but the core rate is seen slowing to 4.7%.
U.S. yields rose by 3-4 basis points after falling more than 10 bps on Friday. Analysts argued Treasury supply could still pressure rates higher.
The shift in yields gave a small boost to the dollar, which was 0.2% firmer. The euro eased 0.3% to $1.0976,while gold paused having rallied for six straight weeks.Oil prices paused having climbed 17% amid tightening supplies - a threat to hopes for continued disinflation.
