General Sentiment:

Infrastructure optimism is put to sleep while covid-19 caution frustrates investor sentiment. Lockdown from Sydney Australia to control the new highly contagious delta covid strain corrected markets this Monday morning. Meanwhile, other countries in Asia extend lockdowns as well. Key factory activity from China is at the front and centre this week, that’s expected to slow down.

PCE figures from last Friday showed inflation rising less than expected in May, easing inflation fears including the fed's rush to hike rates. This week's focus will be on the NFP report this Friday that will also give some clarity in terms of the labour market.

Equities:

On Wall Street, stocks were mixed at the close of trade. The S&P 500 hit its strongest weekly gain since February on weaker inflation figures., While the Nasdaq nudged lower after hitting record highs. Gains on the Dow were mostly led by retail and consumer goods,. Nike had jumped 20.75 points while P&G added almost 2% gains. Boeing and caterpillar corrected from their earlier highs. 

Currency Market

The dollar is steady at multi-month highs, rising 0.1% in the Asian session to 91.87, reversing Friday's lows.

The GBP/USD inched up 0.04% to 1.388.

The USD/CNY rose 0.13% to 6.463 ahead of key Chinese figures later this week- the manufacturing and non-manufacturing indexes.

Commodities: Gold

Gold was up after inflation data, and investors getting mixed signals from the fed. Gold was last seen higher at $1781.

Commodities: Oil

Oil Prices jump to their highest since October 2018 in early Asian trade, on expectations that OPEC+ will be cautious when returning supply to the market. But later nudged lower. Brent slipped 0.23% to $75.21 while WTI fell 0.08% to $73.99.