The Eurozone manufacturing activity expanded at a record pace in May
Asian stock markets were mixed on Tuesday amid the absence of fresh cues from Wall Street, which was closed overnight for a holiday. The Shanghai Composite Index gained 0.25%, the Hang Seng in Hong Kong shed 0.85%, the Kospi in Seoul gained 0.56%, and Sydney’s S&P-ASX 200 slipped by 0.27%.
European stocks rose on the first day of June, with the Stoxx Europe 600 rising 1% in early trade. On the data front, the Eurozone manufacturing activity expanded at a record pace in May. IHS Markit’s final manufacturing PMI rose to 63.1 in May from April’s 62.9, above an initial 62.8 estimate. The annual Eurozone CPI came in at 2% in May, outpacing expectations of 1.9% while accelerating from April’s 1.6%.
Meanwhile, the dollar is mostly on the defensive as positive risk sentiment prevails in the global financial markets on Tuesday, with US stock index futures pointing to a positive open after a long weekend. EURUSD has settled above 1.2200, extending gains to 1.2240. Strong economic data out of the Eurozone added to an upbeat tone surrounding the common currency.
In the oil market, Brent crude has exceeded the $70 figure and was last seen trading around the $71 mark as the demand outlook continues to improve. The Organization of the Petroleum Exporting Countries and allies including Russia are meeting later today. The group is expected to stay the course on plans to gradually ease supply cuts until July.
Elsewhere, bitcoin price struggles to overcome the $38,000 nearest resistance, staying in a tightening trading range these days. As long as the prices stay below the $40,000 figure, downside risks continue to persist in the short term. On the downside, the immediate support arrives at $35,000.
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