Risk appetite improved over the weekend and Asian markets moved broadly higher overnight, despite weakness in China and Japan manufacturing PMIs. European futures suggest a solid start for equities after both bonds and stock markets declined at the end of last week. There were also signs that the cash crunch in China is easing, which helped to underpin sentiment. The GER30 and UK100 futures are up 0.75% and 0.2% respectively, alongside gains of around 0.4% in US futures. XAGUSD rallied for a third straight session, soaring as much as 7.4% to a near 6-month peak, after social media posts last week called for retail investors to flood into the market. This morning: Unprecedented demand but lack of offers?
Biggest Mover USDMXN (-1.12% as of 07:55 GMT).
Today: Focus mainly on final manufacturing PMI readings for the UK, the Eurozone, which suggest ongoing but slowed expansion across the sector. US President Biden will meet with 10 Republican senators to discuss COVID-19. ISM Manufacturing PMIs on tap as well.
