Optimistic Monday, Focus on EU Data

By Peter Bukov|

Published: May 30 2022, 07:54 GMT+0

Optimistic Monday, Focus on EU Data

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Equity markets worldwide rose notably on Monday, supported by some positive news from China, along with last week’s massive gains in global stock indices.

During the London session, US benchmarks traded nearly 1% higher, while EU bourses were circa half a percent stronger. 

Shanghai plans to end a two-month COVID quarantine on June 1, while Beijing resumed certain public transportation and shopping malls on Sunday as infections subsided.

Today’s session will also see the publication of Eurozone business and consumer mood survey data for May, which are expected to reflect a decline in confidence as prices increase and the crisis in Ukraine continues.

Additionally, German HICP inflation is due, expected to continue higher in May, up to 8% from 7.8% yearly. The CPI gauge is also seen rising to 7.6% from 7.4% in April.

You can also read: Stock of the day: General Electric

The US markets will remain closed due to Memorial Day, likely resulting in low liquidity throughout the day. 

USD declines again

In the FX market, the dollar’s weakness is exacerbated by fading anticipation for faster Fed tightening following the planned 50 basis point rate increases in June and July, dragging Treasury rates across the curve. 

As a result,  EURUSD rose to 1.075, while the GBPUSD pair managed to rise above the solid resistance of 1.26. Weakness in the USD dollar benefited precious metals, sending silver to 22.20 USD and gold to 1,860 USD.

Source: https://www.axiory.com/analytics/market-news/optimistic-monday-focus-on-eu-data

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