Following the Memorial Day holiday on Monday, U.S. investors will be paying close attention this week to efforts to re-open economies across the United States and around the world. On Monday, Reuters reported that “Germany’s Ifo Institute’s closely watched business climate index rebounded more than expected in May, recovering from its most dramatic fall on record the previous month, as a gradual lifting of lockdowns boosted corporate expectations.”
In the commodity markets, crude oil and base metal prices were trading higher this morning with Bloomberg reporting “Oil rose above $34 a barrel following a prediction from Russia that the market may rebalance as early as next month due to historic output cuts from global producers. Russia, a key member of the OPEC+ alliance that has pledged to trim supply by almost 10 million barrels a day, expects the market to balance in June or July. Energy Minister Alexander Novak said global output curbs have so far exceeded those agreed by the coalition. Futures in New York were 2.5% higher from Friday’s close after there was no settlement Monday due to a holiday. In London, LME 3-mo. copper and aluminum were trading up around $5,380/mt and $1,513/mt, respectively, earlier today. In foreign exchange trading the dollar was down against most major trading partners with the euro up around $1.096 while the British pound was buying $1.232.