Asian stocks rose after tech sector strength lifted Wall Street shares while concerns about Italy’s debt prompted investors to move into lower-risk government debt elsewhere, pushing U.S. Treasury yields down from recent highs. Mexico imposed tariffs on a range of American products, retaliating for U.S. President Donald Trump’s decision last week to remove an exemption on steel and aluminium for allies Mexico, Canada and the European Union.
The currency market’s response to comments from the new Italian prime minister was more positive, with the euro gaining after Conte said the government had no plans to leave the euro zone. EURUSD was a shade higher at $1.1725 after gaining about 0.2 percent overnight. The currency had fallen to a 10-month low of 1.1510 on May 29 on worries about Italy exiting the euro zone.
In Commodities Gold retraced to 1,297.54 an ounce after posting three days of losses. U.S. oil prices inched up, after industry data showed a decline in local crude inventories.
Brent crude futures were up 26 cents at $75.63 a barrel. The contract went as low as $73.81, the weakest since May 8, the previous day after a report that the U.S. government had asked Saudi Arabia and other major exporters to increase oil output. Sentiment on oil prices remained mostly negative, however, as investors continued to fear OPEC, at its meeting on June 22, could ease production curbs to offset falling supplies in Venezuela and an expected drop in Iran oil exports as U.S. sanctions loom.
For today important economic releases include the Trade of Balance for the economies of US and Canada, the IVEY PMI Index for Canada and the weekly US Crude Oil Inventories. Moderate to high volatility should be expected today, mainly for, the US and the Canadian Dollar.