- The price of oil reached an 11-week high amid expectations of an extension of existing production cuts by OPEC+. The OPEC + summit was scheduled for June 9, however, Algeria, holding the presidency in the organization, proposed to hold the summit on June 4.
- Oil price growth has also been facilitated by the gradual lifting of lockdown restrictions and the restoration of economic activity, as well as by the reduction in crude oil inventories in the United States.
- The price of gold made a downward correction, which reached the support area in 1690. The closest resistance lies in 1753, the breakdown of which will open the way to a 7-year high.
Stock market indices continue to recover despite growing tensions between the USA and China. The new source of tension was national security law adopted in China, which, according to the United States, limits the autonomy of Hong Kong. Donald Trump said that the United States will deprive Hong Kong of preferences due to the adoption of this law.
Japan’s Nikkei stock market index rose to a 3-month maximum due to the expectations of a supplemental budget providing 1.1 trillion dollars of economic assistance to deal with the consequences of the pandemic. Another positive factor was the lifting of the state of emergency in Japan.
- On Monday, data on manufacturing PMI in China, the eurozone, the UK, and the USA will be presented.
- The Reserve Bank of Australia will hold a meeting on Tuesday. The regulator is not expected to bring changes to the monetary policy since it is already implementing an unlimited quantitative easing program.
- On Wednesday, data on Australia’s GDP, German unemployment change, UK services PMI, US non-manufacturing PMI, ADP employment change, and crude oil inventories will be presented. The Bank of Canada will hold a meeting.
- On Thursday, data on retail sales in Australia, UK construction PMI, and US jobless claims will be presented. ECB will hold a monetary policy meeting, at which it may decide to expand the quantitative easing program by 500 billion euros. The ECB may also announce a corporate bond purchase program.
- Statistics on the US labour market will be presented on Friday: non-farm payrolls, unemployment rate, and average hourly earnings. Data on employment change and Ivey PMI in Canada will be presented as well.