Risk is slightly improved on Monday, and this evident with US futures rising by nearly one percent. Asian stocks also had a solid session despite ugly data from China.
China’s private survey services and composite PMI’s came in heavily in contraction for the May month. Despite this the news and data flow were non-impactful on the market.
From Australia we had the private survey inflation data. Headline and core trimmed mean inflation both surged, which could be prompt the RBA to act this week.
The Reserve Bank of Australia meet tomorrow, and as they are paying particular attention to inflation they could be swayed to a hike larger than the 25bp that is the consensus expectation.
Major FX rates stayed in fairly small ranges throughout the Asian session here to open the new week. In addition to the small ranges there is the fact that UK returning from a four-day holiday tomorrow.
US President Biden will be busy today as he is expected to invoke the Defense Production Act to spur domestic production of solar panels and other clean energy projects.
He will use executive action to kickstart solar projects in the US that are stalled by a Commerce Dept tariff probe. This could further accelerate US stock gains.
The market needs some positive news as fears over a recession are high. Monday has also recently been a good day to buy risk in the market.
Bitcoin has had a strong recovery this morning and is over $1,000. The move appears to be driven by the fact that the top coin held its 20-day moving average.
Altcoin are also benefitting from the rise in Bitcoin. Ethereum, Ripple, Litecoin, and Bitcoin Cash are posting strong gains across the board and as usual follow Bitcoin higher.
