Market Roundup
- Australia April Retail Sales MM 0.4%, forecast 0.2%, last 0%.
- Australian firms' profits rise in boost to consumer spending.
- North Korea shakes up military leadership ahead of Trump summit - U.S. official.
- Britain will have Brexit policies ready for June EU summit – Minister.
- With Trump tensions high, Merkel reaches out to Macron on Europe.
- Italy's new government will overhaul Renzi labour reform – Minister.
- G7 finance chiefs kick trade dispute to leaders' summit in Quebec.
- Talks end with China warning trade benefits at risk if U.S. imposes tariffs.
- China says it regrets EU's WTO action over patent rights.
- China's corporate debt challenges a key downside risk to growth – Fitch.
- Trump can probably pardon himself, but has no plan to –Giuliani.
- Former BOJ Governor Shirakawa says gauging inflation has become difficult.
Economic Data Ahead
- (0430 ET/0830 GMT) UK May Markit/CIPS Cons PMI, forecast 52, last 52.5.
- (0430 ET/830 GMT) Euro zone June Sentix Index, forecast 18.4, last 19.2.
- (0500 ET/900 GMT) Euro zone Apr Producer Prices YY, forecast 2.4%, last 2.1%.
Key Events Ahead
- (0600 ET/1000 GMT) Riksbank Governor Stefan Ingves talks about the payment area and what it means to Sweden, Stockholm.
- (1245 ET/1645 GMT) Martin Etheridge, head of division at the Bank of England with responsibility for Fintech, participates in a panel discussion at London School of Economics' Financial Regulation Seminar, London.
- (1300 ET/1700 GMT) Bank of England Member of MPC Silvana Tenreyro speaks, Guildford, UK.
FX Recap
USD: The greenback dipped against a basket of six major currencies, weighed by the euro's bounce against the greenback. The dollar index is slipping 0.15 percent to 94.029 after gaining about 0.2 percent on Friday.
EUR/USD: The euro rose 0.2 percent to $1.1689, recovering the bulk of Friday's losses. A consistent close below $1.1657 will drag the parity down towards key supports around $1.1510 and $1.1390 levels respectively. Alternatively, current upside movement will drag the parity higher towards key resistances around $1.1724, $1.1822, $1.1938 and $1.1996 marks respectively.
USD/JPY: The Japanese yen falls gradually against U.S. dollar. It made intraday high at 109.76 and low at 109.44 levels. A sustained close above 109.48 is required to take the parity higher towards key resistance around 112.96 marks. Alternatively, a daily close below 108.75 will drag the parity down towards key supports around 107.90, 106.71 and 105.32 marks respectively.
GBP/USD: The British pound moves in stiff boundaries against U.S. dollar and currently trading around $1.3364 mark. Intraday bias remains slightly bullish till the time pair holds key support at $1.3242 mark. A sustained close below requires for dragging the parity down towards key support around $1.3024 mark. On the other side, key resistances are seen at $1.3387 and $1.3490 levels respectively.
AUD/USD: The Australian dollar rose on an improvement in broader risk sentiment and upbeat domestic data showing strong company profits and a rise in retail sales. The Aussie was 0.4 percent higher at $0.7599. On the top side, key resistance was seen at $0.7603 mark while immediate support was seen at $0.7505 mark.
NZD/USD: The New Zealand dollar gained 0.2 percent to $0.7004. Pair made intraday high at $0.7011 and low at $0.6977 levels. A sustained close above $0.70 is required to take the parity higher towards $0.7150 mark. Alternatively reversal from key resistance will take the parity down towards key supports around $0.6851 levels.
Equities Recap
Japan’s Nikkei was trading 1.34 pct higher at 22,468.55 points.
Shanghai composite index to open up 0.3 pct at 3,083.43 points and China's CSI300 index to open up 0.4 pct at 3,785.19 points.
South Korea’s kospi was trading around 0.31 percent higher at 2,466.01 points.
Hong Kong’s hang seng was trading 1.33 percent higher at 30,937.02 points.
Australia's S&P/ASX 200 index was up 0.45 pct at 6,017.50 points in early trade.
Taiwanese stock was trading around 1.32 percent higher at 11,094.75 points.
India’s NSE Nifty was trading around 0.07 percent lower at 10,688.80 points while BSE Sensex was trading 0.01 points higher at 35,224.88 points.
Commodities Recap
Brent crude oil futures dipped for a second session on Monday, with prices coming under pressure from record U.S. output and expectations of higher OPEC supplies. Global benchmark Brent was down 12 cents, or 0.16 percent, at $76.67 a barrel by 0159 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 6 cents, or 0.09 percent, to $65.87 a barrel. Last week, the market lost around 3 percent, adding to a near 5-percent decline from a week before.
Gold prices were little changed on Monday as expectations of a U.S. rate hike this month offset support from trade war worries. Spot gold was nearly unchanged at $1,292.96 per ounce by 0340 GMT, after hitting its lowest since May 23 at $1,289.12 in the previous session. U.S. gold futures for August delivery were down 0.2 percent at $1,297.20 per ounce.
Treasuries Recap
Australian government bonds slumped across the curve on Monday following better-than-expected April retail sales data, pushing the 10-year yield to 1-week high. Also, heavy sell-off in the U.S. Treasuries pressurized the world’s 11th largest economy’s debt market.
The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, rose 4-1/2 basis points to 2.731 percent, the yield on the long-term 30-year Note jumped 2 basis points to 3.240 percent and the yield on short-term 2-year up 5-1/2 basis points to 2.054 percent by 03:00GMT.
10-year U.S. treasury yield was at 2.918 percent vs U.S. close of 2.895 percent on Friday.
