China returns from week-long Lunar New Year break. European st | kamal

China returns from week-long Lunar New Year break. European stock markets have started the week in a good mood. Asian markets still closed mixed, with China bourses outperforming after return from holiday, but European and US futures have moved higher ahead of EU open. Markets continue to adjust rate hike expectations, with some risk of overcorrections as rate hike forecasts are brought into 2022. Treasuries have pared earlier gains, and 10-yr Gilt is also little changed. USOil spiked to $92.00 (7-yr highs) amid fear of supply disruptions from a multitude of geopolitical flare-ups. Europe is scrambling to find alternatives to Russian gas, while US winter storms at a time of general underproduction are an added problem. Gold back above 1800 to $1812. Bitcoin up to $42,708. FX markets - EUR broadly lower, but EURUSD up to 1.1426, USDJPY up to 115.27 & Cable to 1.3538.

Biggest FX Mover @ (07:30 GMT) EURAUD (-0.44%) Dipped to 1.4525 before rebounding again on EU open at 1.4568.

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