Stocks are higher on Monday, underpinned by Apple’s sixth straight day of gains and by a surge in oil prices to their highest since 2014. The US$ is mixed and mostly rangebound at the start of the week although it briefly made new trend highs against both the Euro and the Chf. The metals are mildly firmer but the real interest has been in WTI which has broken back above 70.00 pb, and remains there at the end of the session although most of the day’s gains were given up heading into the close. In terms of data, the Euro continued to struggle after some more soft data. The EU Sentix investor confidence dropped to 19.2 in May, down from 19.6 and missed expectation of 21.0. This was the 4th decline in a row and hit the lowest level since February 2017. The Current Situation index dropped 0.2 to 42.8, the lowest since October 2017 while the Expectations Index dropped to -2, the lowest since October 2014.
Asia will kick things off with the Australian Retail Sales (exp +0.2% mm) and the China Trade Balance (exp Imports+22.3%, Exports +32.3%. TB; $24.8 bio). Europe then follows with the German Industrial Production and Current Account , while the Australian Federal Budget will be released at 7.30 pm AET (10.30 am London). There is little to come from the US although oil traders will look to the API Weekly Crude Oil Stock Inventory for guidance. Have a good day.
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