Industrial production in Germany sank 2.5 percent month-over-month in January of 2021, compared to forecasts of a 0.2 percent gain. It follows a 1.9 percent surge in December from a previously reported flat reading. In January, production went down for capital (-0.8 percent) and consumer goods (-3 percent). Also, construction output declined by 12.2 percent due to a strong increase in December and the end of the VAT reduction. On the other hand, production of intermediate goods (0.7 percent) and energy (0.6 percent) increased. Compared with February 2020, the month before restrictions were imposed due to the coronavirus pandemic in Germany, industrial production was 4.2 percent lower. Year-on-year, industrial output fell 3.9 percent.

Malaysian palm oil futures traded higher for the fourth session to around RM 3,900 a tonne on Monday, its highest level since February 2011, as a surge in crude prices boosted demand for biofuels including soya oil and sunflower. Meantime, Swiss voters on Sunday narrowly backed a free trade agreement with Indonesia, on which Switzerland will reduce tariffs by about 20%-40% for up to 12,500 tonnes per year of palm oil, but only if sustainability standards are met. Investors now wait for the February supply and demand data by the Malaysian Palm Oil Board. Malaysia’s palm oil inventories are seen rising for the second month in a row in February and production likely grew 5.8%, rebounding from four consecutive months of drops. Prices fell to as low as RM 3,642 a tonne early on March, after data showed Malaysia’s exports of palm oil products went down 4.6% from a month earlier in February, mainly due to lower sales to China and the US.

US futures traded lower to start the week, with contracts on the Nasdaq sinking around 2%, amid persistent concerns over rising Treasury yields. Meanwhile, the Dow Jones was down around 80 points and the S&P 500 around 30. The benchmark 10-year Treasury note remained close to 1-year highs of 1.6% after the Senate passed President Biden's $1.9 trillion stimulus bill on Saturday and the House is seen passing it this week. Investors worry that rising public spending could lead to a jump in debt levels and pressure prices up. Rising rates in turn hurt companies relying on easy-borrowing and lead to less favourable valuation models for some hot technology shares. Growth tech shares are the most sensitive to rising interest rates, as it erodes the value of future cash flows. Last week, the Dow Jones climbed 1.8%, the S&P 500 rose 0.8%, while the Nasdaq dropped 2.1%.

Brent crude futures rose above the $70 per barrel level on Monday for the first time since January 2020, following reports of attacks on oil facilities in eastern Saudi Arabia, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports. Oil prices were up for a fourth consecutive session after major oil producers decided to keep crude output unchanged in April, and OPEC leader Saudi Arabia said it would maintain its voluntary production cut of an additional 1 million bpd for another month. Elsewhere, investors welcomed upbeat data showing China’s crude shipments in the first two months of 2021 were up 4.1% year-on-year, as well as the approval of a $1.9 trillion stimulus bill by the US Senate over the weekend.

Gold was little changed around $1700 an ounce on Monday after touching a 9-month low of $1686.4 an ounce in the previous session, as investors digest prospects of a swift economic recovery, further fiscal stimulus and rising bond yields and dollar. US Senate passed President Biden's $1.9 trillion stimulus bill on Saturday and the House is seen passing it later this week, paving the way for more checks and unemployment benefits to Americans. Meanwhile, stubbornly high government bond yields and a stronger dollar pressured the precious metal. Last week, gold fell nearly 2%.

Spain's industrial production fell by 2.2 percent from a year earlier in January 2021, following a revised 1.5 percent decline in the previous month and compared with market expectations of a 0.7 percent drop. Output decreased for consumer goods (-5.8 percent), of which non-durable (-5.2 percent) and durable consumer goods (-1.6 percent); capital goods (-5.4 percent) and intermediate goods (-0.6 percent). Meanwhile, production grew for energy (3 percent). On a monthly basis, industrial output went down 0.7 percent, following a 0.8 percent rise in the prior month.

The Shanghai Composite fell 80.57 points or 2.3% to 3421.41 on Monday, closing at 3-month lows amid mounting fears that a lower-than-expected 6% economic growth target from Beijing could lead to a policy tightening. Investors also monitored global stimulus developments as the US Senate passed the COVID-19 relief plan on Saturday, while US 10-year bond yields lifted to 13-month highs of 1.585%. Sentiment was also dragged down by reports that there were 19 new virus infections on Sunday, up from 13 a day earlier. Meanwhile, the Ministry of Agriculture said Saturday that an African swine fever outbreak was confirmed in Sichuan and Hubei. On the data front, exports from China jumped 60.6% yoy, while imports rose 22.2%. Meantime, the Hang Seng Index dropped 563.53 points or 1.94% to 4-week lows of 28534.76.

Norway's industrial production increased 5.9 percent year-on-year in January of 2020, the most since last September, accelerating from a 2.7 rise in December 2020, mainly due to a faster rise in output of electricity, gas & steam (32.4% vs 29.1% in December) and extraction & related services (2.2% vs 1.7%). In addition, manufacturing output rebounded (1.0% vs -1.2% in December), due to a recover in output of textiles, wearing, leather (1.4% vs -0.1%), while production of both food, beverage and tobacco (10.8% vs 7.5%) and refined petroleum, chemicals, pharmaceuticals (4.8% vs 0.1%) grew more. In addition, output fell less for machinery and equipment (-2.2% vs -7.1%), ships, boats & oil platforms (-13.8% vs -9.2%), repair, installation of machinery (-5.0% vs -11.1%), transport equipment n.e.c (-12.1% vs -16.7%), and fabricated metal products (-6.5% vs -13.0%)

The Nikkei 225 fell 121.07 points or 0.42% to 28743.25 on Monday, extending declines of 1.09% last week as investors remained cautious amid a sustained rally that saw 10-year US Treasury yields gaining to 13-month highs of 1.585%, sapping appetite for riskier assets. Local 10-year yields remained at 0.123% after BoJ Governor Haruhiko Kuroda said on Friday he saw no need to widen an implicit band set for its long-term interest rate target at a policy review this month. On the coronavirus front, Japan's COVID-19 inoculation campaign remains hampered by a lack of supply and a shortage of specialty syringes after the Japanese government extended the state of emergency in the Greater Tokyo area for an additional two weeks on Friday.