- Traders have taken cue from debt markets in recent days for an indication of economic sentiment.
- The yield on the U.S. 10-year Treasury note rises to about 2.439 percent in early morning trade.
- U.K. lawmakers vote to seize control of the Brexit process from Prime Minister Theresa May’s government.
Britain’s FTSE 100 was seen 17 points higher at 7,201, Germany’s DAX up 51 points at 11,402 and France’s CAC rising 17 points at 5,280, according to IG index data.
Traders have taken cue from debt markets in recent days for an indication of economic sentiment. Part of the U.S. bond yield curve — which plots yields from shortest maturity to highest — inverted on Friday, with the 10-year yield dipping below the yield on the 3-month paper for the first time since mid-2007.
A yield curve inversion is generally seen as a sign that a recession is coming.
On Monday, the yield on the 10-year note fell to its lowest level since December 2017 — but it’s a different story on Tuesday, with the 10-year yield rising to about 2.439 percent. It’s still roughly 2 basis points lower than the 3-month, however.
Concerns over global growth have heightened recently as data points to slowing economic activity. Disappointing data released Friday out of Europe, along with the Federal Reserve’s cautious outlook, have exacerbated those concerns.
Elsewhere, investors monitored the latest Brexit developments. U.K. lawmakers voted to seize control of the Brexit process on Monday evening, taking it away from Prime Minister Theresa May’s government.
An amendment was passed that allows lawmakers to set a timetable for debate and subsequent votes — expected to take place on Wednesday — on alternative outcomes for the EU withdrawal deal.
In other political news, Chinese President Xi Jinping visited France on Monday. The two countries signed 15 commercial deals, including a 300-plane order with Airbus and a 1 billion euro ($1.1 billion) deal for EDF to build an offshore wind farm in China.
In terms of economic data, French GDP is due to be released at 6:45 a.m. London time.