UK Housebuilder Stocks Surge on New First-Time Buyer Loan Scheme 
Gold Slides Below $4,300 as Oil Surge Fuels Fed Rate Hike Bets 
Asian Stocks Fall as Bond Yields and Oil Prices Surge 
RBA Hikes Interest Rate to 4.60% as Inflation Risks Rise 
China Cuts Tariffs on U.S. Farm Goods but Excludes Soybeans 
U.S. Stock Futures Steady as AI, Rate Concerns Weigh 
Asian Stocks Fall as Oil Surge, Bond Yields and AI Concerns Hit Markets 
BlackRock’s Rick Rieder Favors Bonds Over Stocks as Treasury Yields Surge 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
South Korea Exports Set for 16th Monthly Gain on AI Chip Demand 
China Industrial Profit Growth Slows as Weak Demand Offsets AI Gains 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
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The German bunds remained on the downside Monday, tracking similar movement in the U.S. Treasuries after investors had largely ignored the impact of a government shutdown, following no decision over the country’s tax reform. Also the debt market received softer demand, on optimism over a coaltion government between the Social Democrats and Chancellor Angela Merkel’s Conservative Party.
The German 10-year bond yields, which move inversely to its price, rose 1 basis point to 0.57 percent, the yield on 30-year note also climbed 1 basis point to 1.33 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.59 percent by 08:25GMT.
Germany's centre-left Social Democrats (SPD) have agreed to start formal coalition negotiations with Chancellor Angela Merkel's conservatives. Ever since Germans went to the polls in September, the chancellor's ruling party has tried to form a government. Initially the SPD ruled out going back into government with Merkel's centre-right CDU and its Bavarian sister party, the CSU. But, after months of stalemate, they voted narrowly for formal talks.
Lastly, the main event in the euro area this week will be the outcome of the ECB’s latest policy meeting on Thursday. The previous meeting in December was a relatively low-key one with little initial news emerging beyond the publication of the ECB’s relatively upbeat updated economic forecasts. However, the subsequent publication of the account of the meeting shone some further light on the debate surrounding the ECB’s guidance on future policy, which currently leaves open the possibility of additional asset purchases after September and foresees rates remaining at current levels well past the horizon of the net asset purchases.
Meanwhile, the German DAX remained tad higher at 13,434.50 by 08:45 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -33.09 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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