Main Market Mover
Stocks marched higher as positive Chinese construction data spurred a rally in commodities.
Crude oil rose 0.3%, now tantalisingly close to the $50 mark – a very important psychological level. Inventories for crude and gasoline declined, igniting a rally for oil on Friday.
After testing the $50 level, crude oil failed to maintain the high, turning bearish once again. A fresh bout of inventory declines in this week’s reading could propel the commodity over the $50 mark and provide it with some stamina to hold that mark.
For now, crude looks to be overbought; tipping 30 on the RSI, momentum is lagging and the moving averages curve is inching downwards.
Copper reached a 2-year high today, after climbing as much has 1.2% last week. The rally has been pushed by robust Chinese demand.
The commodity looks to be overbought as the momentum curve dipped sharply. However, the RSI crossed back over 70 and the moving averages curve is slightly tipping upwards, meaning investors may stay bullish.
The dollar is rebounding after hitting its lowest levels in more than a year last week. The greenback is up 0.2% against its major rivals.
The euro is 0.2% weaker against the dollar, finding a new equilibrium after last week’s $1.1776 high.
Possible bearish movements throughout the day thanks to a downward sloping moving averages curve.
The Japanese yen strengthened thanks to data which depicted a robust recovery in Japan’s industrial output.
The Aussie dollar fell 0.1% after giving up 0.4% of its gains last week – edging lower for the third week in a row.
The sentiment in equity markets remains positive as the markets await a flurry of earnings reports due to be released this week. Some of the world’s major companies will shed some light on their balance sheets this week, including; Apple, Tesla, and Toyota.
The European market is upbeat, reaping the rewards of higher banking and commodity stocks.
France’s CAC 40 is up 0.2% while London’s FTSE 100 is up 0.33%.
US equities are inching even higher. The tech-heavy Nasdaq 100 is 0.12% higher while the Dow Jones gas added 0.17% to its value today.
Asian indexes are some of the best performers. The HSI is up 0.89% while India’s Nifty 50 is 0.2% higher.