EQUITIES
Hong Kong’s Hang Seng jumped more than 2%, leading gains in Asia-Pacific markets on Monday. The benchmark index was up 2.55%, while the Shanghai Composite in the mainland rose 1.44%.
The South Korea KOSPI climbed 1.79%, and in Australia, the S&P/ASX 200 rose 0.23%.
Japan’s market was closed for a holiday.
European stocks are set to open cautiously higher on Monday after gains seen last Friday, although Italy’s main index is seen opening in negative territory on political uncertainty.
OIL
Oil futures reversed earlier losses in trade to rise. Brent crude gained 1.43% to $102.58 per barrel, while the U.S. WTI crude climbed 1.11% to $98.71 per barrel.
The market cautiously awaits the monumental event risk if Nord Stream 1 gas flow from Russia to Europe will resume later this week.
CURRENCIES
The U.S. dollar index was steady at 107.908 against its rivals, marginally lower than last week's two-decade high of 109.290.
GOLD
Gold prices rose after shedding 2% last week, helped by a slight pullback in the U.S. dollar and as investors dialled down bets of a 100-basis-point interest rate hike by the Federal Reserve this month.
Spot gold climbed 0.4% to $1,715.30 per ounce, after falling to its lowest in nearly a year last week. U.S. gold futures gained 0.5% to $1,712.80.
Elsewhere, spot silver rose 0.4% to $18.76 per ounce, platinum gained 0.8% to $857.30, and palladium climbed 2.2% to $1,869.10.
ECONOMIC OUTLOOK
Shares inched higher on Monday after a positive end to the week last week. Though nerves are stretched ahead of a near-certain rate hike in Europe and another round of corporate earnings reports.
Recession fears have dominated trading sentiment in recent weeks as market participants worry that aggressive action from the central banks — in an effort to tame decades-high inflation — will ultimately tip the economy into a recession.
The uncertainty will haunt the European Central Bank as it holds a policy meeting where it is likely to kick off a tightening cycle with a rise of 25 basis points. Investors have also been encouraged that the Federal Reserve is likely to hike by 75 basis points next week, in part thanks to an easing in consumer fears of inflation.
Over in Asia, markets are keenly watching China's central bank meeting on Wednesday and the Bank of Japan's on Thursday.
First round of flash surveys on global manufacturing meanwhile will provide a timely reading on how industries are faring this month.
It is also shaping up to be a tense week for Europe as it waits anxiously to see if Russia resumes the flow of gas through the Nord Stream 1 pipeline on July 21, while Italy teeters on the brink of political turmoil should Prime Minister Mario Draghi go ahead and resign.
Corporates report earnings will be on show this week including Goldman Sachs Group Inc, Bank of America Corp, International Business Corp, Netflix Inc, Tesla Inc and Twitter Inc.
