German retail sales data came in far better than expected
Following a retreat on Wall Street ahead of the weekend, Asian stocks were mostly lower in Asia in thin trading Monday, as many markets closed for holidays. Investors remain cautious amid the surge in coronavirus cases in the region, particularly in Japan and India. As such, Hong Kong’s Hang Seng lost 1.28%, the Kospi in South Korea slipped 0.66% while Australia’s S&P/ASX 200 bucked the trend to gain 0.04%.
In Europe, equities rallied on Monday as regional investors bullish about the global economic recovery. The Euro STOXX index rose 0.68% in early trading, with Wall Street futures being higher as well, pointing to further gains after surging to fresh all-time highs last week. German retail sales data for March came in far better than expected, adding to the upbeat tone in the regional markets.
Meanwhile, the dollar keeps more mixed so far in the session. EURUSD managed to hold above the 1.2000 figure during the recent sell-off and turned marginally positive on the day in recent trading. Now, the euro needs to overcome the 100-DMA in order to extend recovery from Friday’s plunge when the dollar rallied across the board.
Oil prices have been under pressure since last Friday as the second wave of a coronavirus epidemic in India offsets optimism about a strong rebound in demand in other countries. Brent crude fell to the $66 area earlier in the day before bouncing slightly. Despite the current retreat, the bearish potential is limited as long as the prices stay above the 20-DMA, today at $65.30. In the short term, a relatively strong dollar could cap recovery attempts. On the upside, the immediate barrier now arrives at $67, followed by the $67.40 area.
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