European stocks rose with oil stocks making gains as crude prices increase after Saudi Arabia raised its official selling price for Asian customers. In recent days, markets have swung on conflicting signals from scientists and vaccine makers regarding the severity of the Omicron variant and how well existing vaccines may work against it. It still may be weeks before a more definitive picture forms.
* Evergrande plummets on debt warning, contagion fears increase. * PBOC cuts RRR ratio for second time this year. * South African rand surges on hopes Omicron symptoms are mild. By Ambar Warrick.
Euro zone periphery borrowing costs fell on Monday tracking moves in Italian bond market, which is outperforming its peers after a rating upgrade by Fitch. Trading across the single currency bloc was generally subdued as investors awaited more details on the new Omicron coronavirus variant and what it means for the global economic outlook and European Central Bank policy.
The dollar ticked higher on Monday as Treasury yields rose off last week's 2-1/2-month lows following news that initial observations suggested those suffering from the Omicron COVID-19 strain only had mild symptoms. The Omicron news from South Africa helped reverse some of the moves from Friday, when Wall Street had sold off heavily.
U.S. Treasury yields rose on Monday, reversing some of the moves from late last week as reports from South Africa that Omicron cases only showed mild symptoms boosted risk sentiment. Friday's U.S. jobs data failed to shake market expectations the Federal Reserve will accelerate the pace of its policy tightening.
* Evergrande plummets on debt warning. * Turkey's lira leads EMEA losses. By Ambar Warrick. Emerging market stocks fell close to a one-year low on Monday, tracking losses in major Chinese technology stocks, while South Africa's rand rose on early signs that the Omicron coronavirus variant may be causing largely mild infections.
Italy's 10-year bond yield fell to. Fitch Ratings late on Friday lifted Italy's sovereign credit rating by one notch to BBB, citing confidence in the economic outlook supported by the use of the European Union's post-pandemic recovery fund. That ensured a positive start to the week for Italian bonds, with prices rising and yields falling.
* Faster Fed tapering fears could push gold to $1,720/oz - analyst. * U.S. employment growth slowed in November. By Nakul Iyer. Gold prices edged lower on Monday, pressured by a stronger dollar and rising expectations that the U.S. Federal Reserve could reduce its asset purchases at a faster pace amid signs of a tighter labour market.
Japan's 10-year government bond yields fell on Monday, tracking a tumble in U.S. 10-year Treasury yields as uncertainty over the Omicron coronavirus variant dampened risk sentiment.
* U.S. job growth slows; jobless rate plunges to 4.2% * Stocks, bonds yields slide in volatile trade. * U.S. 10-year yields fall to 1.35%, lowest in 10 weeks. * Dollar little changed, gold rises more than 1% By Herbert Lash and Lewis Krauskopf.
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