PHNOM PENH: The CSX Index is closed for today due to elections
STOCKS FIRM AHEAD OF RATE MEETINGS, CRUDE HITS $120
Stocks, the dollar and crude oil firmed on Monday as investors positioned themselves for more direction on interest rates and the economy from a string of central bank meetings spilling into next week.
The European Central Bank meets on Thursday, though it is not expected to begin raising interest rates until July, with rate setters at the U.S. Federal Reserve and Bank of England gathering next week.
"There is still some doubt as to whether or not inflation has peaked," said Michael Hewson, chief markets analyst at CMC Markets.
"We are in a bit in a no-man's land at the moment with respect to peak inflation, and also China reopening and the possible tailwinds that might bring. Oil prices are still a headwind and so it's difficult to gain any direction," Hewson said.
The week kicked off with some investor appetite for risk as the MSCI all country stock index (.MIWD00000PUS) gained 0.3%, its recent rebound from near bear-market territory still largely intact.
The STOXX index (.STOXX) of 600 European companies gained 0.8%. Blue chips in London (.FTSE) were up 1.2%, shrugging off news that British Prime Minister Boris Johnson is to face a confidence vote by lawmakers from his governing Conservative Party later on Monday. read more
Oil prices firmed after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate output increases over the next two months.
Brent was up 0.6% at $120.41 a barrel. U.S. crude rose 0.55% to $119.53 per barrel.
S&P 500 futures added 1% and Nasdaq futures 1.4%, pointing to a higher open on Wall Street.
ASIA SHARES RISE
Shares in Asia-Pacific (.MIAPJ0000PUS) gained 0.6%, while the Nikkei (.N225) in Japan rose 0.6%.
Chinese blue chips (.CSI300) climbed 1.9% after a survey confirmed service sector activity shrunk in May, but the Caixin index still improved to 41.4 from 36.
Forecasts are for a steep rise of 0.7% in May, though the annual pace is seen holding at 8.3% while core inflation is seen slowing a little to 5.9%.
A high number would only add to expectations of aggressive tightening by the Fed, with markets already priced for half-point increases in June and July and almost 200 basis points (bps) by the end of the year.
The euro also made a seven-year peak on the yen at 140.39 , after climbing 2.9% last week, while the dollar held at 130.78 yen having also gained 2.9% last week.
Gold was stuck at $1,852 an ounce, having held to a tight range for the past couple of weeks.
