US equities marked a rebound last week, but will that optimism continue this week? Many voices recognise there are lofty market valuations that will eventually crumble. However, the timing of those falls is much harder to pin down. Either way don’t let the dip turn into a rip in your account, so keep nimble out there ok?
Risk tone is mixed with commodities holding up, yields mixed, equities flat (but VIX lower), and FX showing risk off tones with AUD, CAD, & NZD all lower. Pretty light volumes at the moment as usual for a Monday. The regional spike higher in COVId-19 cases in Taiwan resulted in the TAIEX falling 3% at the open.
On the economic data front it is very quiet with a light calendar.
0700 BST Japan May preliminary machine tool orders.
0730 BST Swiss May PPI
PPI plays second fiddle to CPI data. However, any signs of general inflationary pressure will be noted as investors keep an eye out for inflation that may rocket higher.