-Japan stimulus bets: Japanese Prime Minister Shinzo Abe’s conservative coalition is set for a super-majority in the upper house of parliament following the weekend election. A win would allow his administration to push ahead with constitutional reform. Abe has also promised to take action on the economy, saying he wants «the swift formulation of comprehensive, bold economic measures.» Shares in Japan surged higher following the election, with the Nikkei 225 Stock Average adding 4 percent. The yen was trading at 102.27 to the dollar at 6:03 a.m. ET.
-Big week for Carney: Bank of England Governor Mark Carney faces the U.K. parliament’s Treasury Select Committee from 5:00 a.m. ET tomorrow, ahead of Thursday’s first post-Brexit interest rate decision for the central bank. The majority of economists surveyed by Bloomberg are expecting the monetary policy committee to cut rates for the first time since 2009 at Thursday’s meeting, with most seeing a 25 basis point reduction to 0.25 percent. British Chancellor George Osborne is spending the week on a tour of global financial capitals in an attempt to shore up confidence in the U.K. economy, while the leader in the race to be next prime minister, Theresa May, has promised a crackdown on corporate irresponsibility in a speech given this morning. The pound was trading at $1.2876 at 6:13 a.m. ET.
-Markets rise: Abe’s election victory and last Friday’s U.S. jobs report combined to give a lift to shares in Asia, with the MSCI Asia Pacific Index climbing 2.1 percent overnight. China’s Shanghai Composite Index only managed a 0.2 percent gain at the close despite easing factory-gate deflation and state pension funds preparing to invest in equities. In Europe, the Stoxx 600 Index was 0.7 percent higher at 6:05 a.m. ET, with commodity producers rising most. S&P 500 futures were up 0.3 percent.
-Banks like commodities, think bond rally is done: Citigroup Inc. has said that it is «especially bullish commodities for 2017,” and sees the impact of the U.K. vote to leave the European Union as fading. The bank see crude oil rising to $60 a barrel in 2017 as non-OPEC production continues to fall. Morgan Stanley, meanwhile, has cooled on government bonds. The bank, which advised investors to bet on sovereign debt ahead of the Brexit vote has switched its outlook on G4 — U.S., Japanese, German and U.K. — debt to «neutral.»
-Pokemon pop: Shares in Nintendo (NTDOY) soared by nearly 25% in Tokyo on Monday after a new craze for the smartphone game Pokemon Go swept the U.S. The game has already been downloaded more than a million times on Android and Apple devices since its release Thursday. Pokemon Go uses augmented reality to encourage players to walk around their neighborhoods in search of cute, virtual Pokemon characters on their screens.
-Stocks near record highs: U.S. stocks have largely stalled since hitting record highs in May 2015. But following heavy post-Brexit vote losses, the S&P 500 and Dow Jones industrial average have rebounded strongly. The S&P 500 is now less than 1% away from its all-time high and the Dow is about 1% away from a new record. The Nasdaq still has some way to go, however, before reaching its peak posted in the middle of last year. Currently, U.S. stock futures are moving up. European markets are posting steady gains in early trading. Most Asian markets also rose Monday as investors got their first chance to react to Friday’s strong U.S. jobs report.
-Earnings season starts: Corporate America is set to kick off its quarterly earnings season after the closing bell when Alcoa (AA) reports results. Alcoa is expected to post a big plunge in second quarter profits. Then later this week, Yum! Brands (YUM), BlackRock (BLK), JPMorgan Chase (JPM) and Citigroup (C) are among the key companies that will release their quarterly results.
– The next big IPO: The market for new listings is showing signs of life. Popular messaging app operator Line is set to launch the year’s biggest tech market debut. On Monday, the company priced its initial public offering at 3,300 yen per share, raising 115 billion yen ($1.14 billion). That values the company at more than $6 billion. Shares in the Japanese firm will begin trading in Japan and New York later this week.
– New life for Abenomics: Japan’s Prime Minister Shinzo Abe won Sunday’s elections and declared plans to push forward with his economic reforms, also known as Abenomics. He said officials would start preparing «comprehensive and drastic» economic measures Tuesday. This pushed the Japanese yen down versus all major global currencies, and boosted the stock market by 4%.