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As many major crypto coins continued to recover, the estimated total crypto market cap surged well above the $950 billion mark after over the weekend the metric at times was depressed below the $850 billion threshold. Bitcoin traded by Tuesday morning above $21k, while Ethereum at levels around $1,150 was seen close to the high from Monday. Strong appreciations were seen among some altcoins like Polkadot and Solana with these cryptos gaining since the start of the week both by around 16%.
Stock market indices traded by Tuesday morning overall higher compared to Friday with even the Japan 225 (Yen) index recovering after a dip to a three months low intraday on Monday. The Volatility Index VIX continued to gradually come down trading by now close to the levels seen a month ago, though at that time the US 500 index was trading around four per cent higher compared to Tuesday morning.
On Tuesday in the U.S. existing home sales data for May will be published as well as the Chicago Fed National Activity Index (CFNAI). In Canada retail sales data for April will be released, while in New Zealand trade balance statistics for May can be expected.
As the dollar traded overall weaker against most other major currencies, the EUR/USD also managed to appreciate and trade throughout most of the day solidly above the 1.05-mark. The euro itself was trading at that time fairly mixed against other currencies with pairs like the EUR/CHF and EUR/SEK turning lower, while the EUR/GBP and EUR/JPY remained in the green.
For this week the ECB has scheduled a meeting of its Governing Council for a non-monetary policy meeting for Wednesday, while on Thursday the General Council of the ECB is set to meet in Frankfurt.
Gold and silver prices are trading moderately lower since the start of the week, while palladium was by Tuesday morning up by around three per cent compared to the closing level on Friday.
The 10-year U.S. T-Note yielded by Tuesday morning up close to levels of 3.3% following the long weekend break, which is a moderate increase compared to EOD on Friday, though still well within the range seen during the previous highly volatile week for many markets.
Oil prices rebounded towards levels above $110 per barrel of WTI crude by Tuesday after hitting a new one month low at the start of the week with a barrel at times priced below $107 in the futures market.
In terms of geopolitics, the potential concession by Iran in the new nuclear deal talks, dropping its insistence that its IRGC are removed from the list of organisations the United States consider to be terrorists groups might be seen as a significant breakthrough.
Due to a holiday in the U.S. on Monday, the release of the weekly oil inventory data will be one day later than usual with the American Petroleum Institute (API) publishing its weekly statistical bulletin on Wednesday and the Energy Information Administration (EIA) releasing its weekly data on crude oil, gasoline and distillate stockpiles on Wednesday.
In the overall moderately bullish market sentiment, European market indices like the Europe 50 and Germany 40 traded higher at a time now significant trends were coming from the U.S. as many markets there remained closed due to a public holiday.
Some of the best-performing sector on Monday was the airline industry with stocks of Airfrance KLM (+8.30%) and Lufthansa (+7.01%) performing very positively. A positive performance was also seen among many companies involved in the food delivery business like Just Eat Takeaway.com (+3.20%), HelloFresh (+3.45%) and Delivery Hero (+4.09%).
Relevant fundamental data releases for the eurozone can be expected especially towards the end of the week when for example on Thursday the German and eurozone services and manufacturing PMI statistics will be released and also French Business Climate Indicator data becomes available.
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