German retail sales jumped by 4.2% last month versus 2.0% expected
Asian stocks advanced on Monday despite weak economic data out of China. The official manufacturing PMI arrived at 50.4 in July from 50.9 in June. The official figure was the lowest since February 2020. Besides, China is dealing with an outbreak of the delta variant of the coronavirus. Still, the Shanghai Composite index gained nearly 2%, Tokyo’s Nikkei 225 added 1.82%, the Kospi in Seoul rose 0.65%, and Australia’s S&P/ASX 200 was up 1.34%.
Tracking positive sentiment around the world, European stocks climbed on Monday, with the pan-European Stoxx 600 adding 0.7% in early trade. On the data front, German retail sales jumped by 4.2% last month versus 2.0% expected and 4.2% last. On an annualized basis, the German Retail Sales came in at 6.2% in June versus -2.4% expected.
Meanwhile, the dollar index gives away Friday’s gains as risk sentiment has improved at the start of the week. The index was last seen challenging the key support around 92.00 despite a mild advance in yields of the key US 10-year note. Against this backdrop, EURUSD erased Friday’s losses to settle marginally below the 1.1900 figure that represents the immediate resistance at this stage. Later in the day, the US manufacturing PMI could affect the euro through dollar dynamics.
In other markets, gold prices have been losing ground for the second day in a row on Monday after failed attempts to break above the $1,830 region. Still, the bullion is holding above the $1,800 figure where the 100-DMA lies. As long as the precious metal is holding above this moving average, downside risks are limited.
