Asian stocks were mixed-to-negative on Monday as the number of coronavirus cases continued to rise over the weekend. In the United States, more than 30,000 new infections were reported on Friday and Saturday — the highest daily totals since May 1. In Beijing, a total of 106 new confirmed cases had been recorded over five days, adding to uncertainty in the markets. As a result, the Shanghai Composite in China dipped slightly while the MSCI Asia ex-Japan index slid 0.18% on Monday.
In Europe, stocks retreated on Monday amid growing concerns over a rise in infections in Germany and the US. Meanwhile, the ECB vice president Luis de Guindos said that a pan-European fiscal reaction to the virus pandemic was necessary while German finance minister Olaf Scholz expressed confidence that they will have a solution for the EU recovery fund. The pan-European Stoxx 600 fell 0.9% in early trade but managed to trim losses to 0.2% afterwards.
Meanwhile, European currencies turned higher after the recent slide. EURUSD regained the 1.12 handle as risk sentiment has improved somewhat during the session. However, the euro is yet to confirm a recovery on a daily closing basis. In the short term, the Eurozone preliminary consumer confidence data for June could affect dynamics in the pair. In a wider picture, further direction in the common currency will depend on the coronavirus-related developments and risk sentiment in general.
Elsewhere, Brent crude has climbed above $42 and but struggles to extend the recent ascent amid the lingering uncertainty surrounding the virus. On the upside, the key immediate barrier arrives around $43 while the intermediate support comes at $41. Later today, dynamics in oil futures will depend on general risk sentiment.
In other markets, bitcoin is challenging the 50-DMA on Monday. A decisive break above the $9,400 region could shift market focus to the $9,600 region. Once above this resistance, BTCUSD may target the $10,000 psychological level.
