► Equities are little changed in Europe and US stocks slightly higher in US pre-market trading. Stocks in Asia ended the day well in the green, building on the previous week’s rally, fueled by growing belief that the cycle of central-bank rate hikes may be nearing an end. We also see an uptick in oil prices, Brent and WTI crude oil are trading 1.7% – 1.9% higher at the moment, influenced by ongoing supply curbs.
► European stock markets are trading relatively flat, with German and French markets slightly lower. PMI data from the Eurozone (final) came with little surprise and in-line with low expectations (and preliminary data) showing that both the services an manufacturing sector in the Eurozone remains in contraction territory. With Eurozone Services PMI at 47.8 and Eurozone Manufacturing PMI at 46.5.
► U.S. equity futures are trading slightly higher, with the S&P 500 up 0.25% trying to continue it's notable 6% gain last week (best performing week in 2023). The USD is trading slightly lower against major currencies, potentially sliding for a fourth consecutive session. However, US Treasury yields are trading slightly higher (10-y is trading 3.5-bps higher), reversing some of Friday’s steep drop. The sharp drop in the previous week was a signal of the market's changing rate hike expectations.
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