The week is off to a bad start in Asia, with economic data from China and Japan missing estimates early on Monday.
Crude Oil starts the week under selling pressure around $91 a barrel. US index futures are down, but interestingly European futures were better offered in Asia; but the news of the drying up of the Rhine should weigh on opinion in Europe.
In the US, Friday’s session was again strong. The S&P 500 gained 1.73%, while the Nasdaq jumped more than 2%. From a technical perspective, the Nasdaq’s advance over the past week marks the end of the bear market, as the index has rebounded more than 20% since the June decline. Could the rally last?
The FOMC minutes, due this week, will certainly confirm that the Fed remains focused on lower US inflation; the latest weakness in inflation data is unlikely to change the Fed’s roadmap, at least for the next couple of meetings.
The US dollar is firmer on Monday. Gold is struggling to find buyers at the $1,800 per ounce level, as Bitcoin tests the $25,000 resistance on the upside. The visit of the American delegation to Taiwan this week could reignite tensions between the United States and China and help the precious metal to accumulate safe-haven flows. But the topside will probably remain limited.