Risk-on to start the new week
Markets are shrugging aside some pessimistic coronavirus developments over the weekend as we see risk assets rally to kick start the new week.
For some context, WHO noted over 200,000 coronavirus cases in 24 hours across the globe on Saturday - a record figure.
It is still early in the day but so far the moves are pretty modest so let's see if that can keep pace as we get into the European trading session ahead.
The dollar and yen are weaker across the board, with US futures firmly higher by ~1% currently. Asian equities are also enjoying a strong leg higher on the day.
The Shanghai Composite is notably up by more than 4% after a bullish breakout at the end of last week, targeting the April 2019 high now with today's extension.
0600 GMT - Germany May factory orders data
Prior release can be found here. Industrial orders are expected to bounce back in May amid the easing of lockdown measures, but overall remain subdued as demand conditions stay weaker. This shouldn't tell us much of anything new at this point.
0730 GMT - Germany June construction PMI
Prior release can be found here. Much like the other PMI readings, a further bounce back is expected here but this mainly reaffirms that construction activity in June > May > April. Overall conditions should remain more uncertain moving forward.
0800 GMT - SNB total sight deposits w.e. 3 July
Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.
0830 GMT - Eurozone July Sentix investor confidence survey
Prior release can be found here. Investor confidence should continue to show an improvement as economic conditions are faring better, but still expected to reflect some degree of uncertainty and caution as virus developments are still keeping rather active.
0830 GMT - UK June construction PMI
Prior release can be found here. Similar to the German reading above, a further bounce is expected here with activity to show better conditions than in May and April. That said, overall conditions are likely to stay more subdued and the real challenge will be to see how the pace of any recovery be sustainable in Q3 and Q4.
0900 GMT - Eurozone May retail sales data
Prior release can be found here. Retail sales are expected to bounce back strongly on the back of pent-up demand from April to May. Overall activity is expected to keep a little more subdued with the coming months set to offer a better indication of how consumption activity is actually faring in the euro area amid the new normal.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
