Building on Friday’s late day rebound, world markets have kicked off the new week and the month of June in the green. US index futures are trading flat to up 0.5% with the NASDAQ leading the rebound again, while in Europe, the Dax is up 0.7% and the FTSE is up 0.2%.
Treasury yields are steady today ahead of this week’s central bank meetings which include the Bank of Canada on Wednesday and the European Central Bank on Thursday. Market chatter in recent days has suggested that both banks could potentially cut interest rates. If they were to do so, however, it’s unclear whether the street would take this as victory over inflation or a sign of economic weakness.
Speaking of inflation, commodity prices are climbing this morning. Copper is up 1.0% while Natural Gas is up 3.4%. US Crude Oil is steady near $77.00 after OPEC+ agreed over the weekend to extend voluntary cuts through to the end of 2025. In currency action, Gold is up 0.2% while Bitcoin is up 2.2%.
Manufacturing PMI reports from around the world have been rolling out overnight and this morning. China, Switzerland, and Spain, have come in better than expected, while France, Italy and the UK were worse than expected. Canadian Manufacturing PMI (street 50.2) is due at 9:30 am EDT, followed by the US at 10:00 am EDT (street 49.6). Investors may take interest in whether or not the US national report reflects or rejects the series of terrible regional surveys that came out last week, and whether the price component indicates inflation accelerating again or not. US Construction Spending (street 0.2%) is also due at 10:00 am EDT.