Stocks tick up while yen slips in calm before US data

NEW YORK/LONDON, Aug 12 (Reuters) – World stocks edged higher on Monday while the yen slipped as a holiday in Japan removed one source of recent volatility, with investors looking ahead to U.S. and Chinese economic data.

“We have been winding risk down during the recent market move globally,” said Robert Both, a senior macro strategist at TD Securities. “Our preferred positioning is dovish with moderate risk allocated at the moment.”

“It’s a pretty benign expectation,” said Timothy Graf, a senior macro strategist at State Street. “Inflation is really not the problem it once was.”

“The balance of risks is that policy has been too tight for too long. Now you’re starting to see that show up in the labour market.”

Japan’s yen slipped, with the dollar up 0.4% at 147.26 yen . The dollar index was little changed at 103.16 while the euro rose 0.1% to $1.0928.

MUCH QUIETER

“It has been a much quieter start to this week than last week,” said Lee Hardman, currency strategist at MUFG.

“The sharp reduction in short yen positions held by leveraged funds … has likely provided some reassurance as well that the unwind of yen-funded carry trades is now more complete.”

China issues figures on retail sales and industrial production on Thursday, which are expected to show the economy continuing to underperform, potentially exacerbating some investors’ fears about global growth.

The yield on the 10-year Treasury note , which sets the tone for borrowing costs around the world, slipped to 3.9035% after climbing 15 bps last week in its biggest rise since April. Yields move inversely to prices.

Oil prices jumped by more than 3%, rising for a fifth consecutive session on expectations of a widening Middle East conflict threatened supplies.

Brent futures settled 3.3% higher at $82.30 a barrel, while U.S. crude ended at $80.06, up 4.2%.

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