- Stock markets rise in Europe and in the US prior.
- No impact data on Monday; Boris Johnson submitted to a vote of internal censure.
- Disparate metals: silver up 2%, gold flat.
Wall Street futures are rising on Monday. The main indices remain within the ranges of last week, validating the rebound, but unable to extend the recovery.
From employment to inflation
The return to work in beijingtogether with the report of China Caixin Services PMI (41.4 in May) which exceeded expectations served as fuel in the start of the week for the markets. In Europe, the main stock markets are up more than 1%. Optimism moves to the US where in the previous S&P 500 rose 1.14%, the Dow Jones rose 0.84% and the Nasdaq 1.55%.
Among the busiest companies is Didi which goes up more than 60%. A report in the Wall Street Journal indicated that the intervention of the Chinese government will end this week with what would be authorized to attract new clients. Starbucks rises almost 2% in the premarket, after learning that it is looking only for external candidates for the next CEO. Among the companies reporting on Monday is Science Applications International, coupe, Acura Pharmaceuticals and GitLab.
Last week’s US employment data helped ease fears of a recession. This contributed to a rise in Treasury bond yields. The 10-year tranche is at 2.95% and the 30-year tranche is at 3.11%. This week the economic calendar for the US shows little charge, highlighting the retail inflation report for May on Friday.
In Europe, the focus at this time is on the United Kingdom where in a few hours Prime Minister Boris Johnson will be subjected to a vote of no confidence in the ranks of the Conservative Party. It is estimated that Johnson would pass the test and continue in office. In the previous pound sterling is firm and rises both against the dollar and against the euro.
The dollar is retreating slightly, while the euro shows no significant changes. Thursday the European Central Bank will announce its monetary policy decision with the expectation of a confirmation that an adjustment is ahead, with the completion of the purchase program and signaling increases in interest rates.
The prices of Petroleum They have a volatile day. They started the week higher and hit their highest in months, with both Brent and WTI above $120.00 but failed to hold on to gains and are trading in negative territory. The rise had been driven by Saudi Aramco’s announcement of a price increase for its Asian customers.
Between the metals there is inconsistent behavior. Gold is trading flat around $1855, while silver is down almost 2% and trading very close to weekly highs above $22.30. Copper also climbs close to 2%.
The optimism reaches the crypto market where there are widespread increases. The Bitcoin rise 5% and trade at $31,400.
Technical levels
Source: Fx Street
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