The USD index struggles for direction around 90.30 on Monday
Asian stocks saw a mixed session on Monday. Chinese data showed that industrial output was up 9.8% in April from a year earlier versus 9.1% expected. Retail sales climbed 17.7% last month, falling short of the 24.9% increase expected. Shanghai Composite gained 0.78%, Japan’s Nikkei 225 fell 0.92%, the Kospi in Seoul dropped 0.60%, while Australia’s S&P/ASX 200 gained 0.13% and the Hang Seng in Hong Kong added 0.59%.
In Europe, equities edged marginally lower despite fears about inflation appear to have subsided. The Stoxx Europe 600 slipped 0.1% in early trade. In individual stocks, Ryanair Holdings edged up 1.2% after the data showed that the company recorded a 1-billion-euro ($1.2 billion) annual loss in the year to March 30. The budget airline also said bookings have jumped significantly from a very low base since the first week of April.
Meanwhile, the USD index struggles for direction around 90.30 on Monday as US 10-year yields drift lower and approach the 1.60% figure. The index navigates the lower end of the recent range amid mixed risk trends at the beginning of the week. Later in the day, the NAHB index will take centre stage seconded by the NY Empire State index.
Elsewhere, oil prices recovered on Friday and have settled below $69 since then. Brent crude struggles to make a decisive break above the $70 figure amid mixed risk sentiment coupled with rising coronavirus cases in several Asian countries. Also, the recovery of a major U.S. pipeline network eased concerns over supply. In the short term, oil prices will likely remain under some pressure, especially as risk sentiment has deteriorated somehow in Europe.