The Chinese government has confirmed that the large white balloon spotted by civilians, recently shot down by the US over the Carolina coast, is indeed a Chinese vessel. This has sparked suspicion that the vessel was sent on a clandestine spying mission. Japan has also reported similar sightings in their airspace. The incident has further tightened tension between the US and China, with the US cancelling a high-stakes trip to Beijing that was aimed at reducing frictions between the two countries. China has since expressed its dismay and anger at the US's "indiscriminate use of force" and "unacceptable and irresponsible action."

EQUITY

US stocks ended lower on Monday as investors adjusted their outlook on the Fed's interest rate cuts. Traders are keeping a close eye on the Fed speeches this week for any changes in rhetoric.

GOLD

The gold price rose by 0.11% on Monday and continued its path of recovery after two consecutive red days. The pressure on gold prices was due to the strength of the dollar and Treasury yields.

OIL

Oil prices rose for the second consecutive day due to optimism about demand recovery in China and concerns over supply shortages in Turkey. Brent crude futures rose 153 cents to $81.26 per barrel, and WTI futures rose 122 cents to $74.40 per barrel.

CURRENCY

The dollar hit a four-week high against the euro on Monday, and the euro slipped 0.62% against the dollar to $1.07253, its lowest since January 9. The likelihood of the US Federal Reserve continuing its tightening policy and interest rate hikes was raised due to the recent strong US jobs report.