• The dollar held near a 13-month low against a basket of currencies on Monday, weighed down by political uncertainty and increased short positions, but markets were wary of pushing it lower before data due later this week.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, rose 0.2 percent to 93.450, trimming some losses after dropping 0.6percent on Friday. It fell to its lowest level since June 2016 on Thursday.
• Japan's factory output rebounded in June from a decline in May as production of cars and industrial chemicals increased, suggesting economic expansion may be on a more stable footing.
Industrial output rose 1.6 percent in June from the previous month, just below the median estimate for a 1.7 percent increase and following a 3.6 percent decline in May.
• Growth in China's manufacturing sector slowed marginally in July, reinforcing expectations the world's second-largest economy will cool in coming months as borrowing costs rise and regulators clamp down on riskier types of financing.
The official Purchasing Managers' Index (PMI) released on Monday stood at 51.4 in July, down from the previous month's 51.7 but still well above the 50-point mark that separates growth from contraction on a monthly basis.
• There is no link between North Korea's nuclear program and China-U.S. trade, a senior Chinese official said on Monday, after U.S. President Donald Trump said China had done nothing for the United States on North Korea.
Chinese Vice Commerce Minister Qian Keming, asked about Trump's tweets at a news conference in Beijing, said there was no link between North Korea and China-U.S. trade.
• European governments are watching the dispute between Washington and Moscow carefully, fearful that new sanctions against the Kremlin may negatively impact the continent’s supply of energy from Russia.
The new round of sanctions is being driven by both the House of Representatives and the Senate in Washington, which is intent on punishing both Russian President Vladimir Putin and the Russian government for its meddling and intervention in last year’s US presidential election campaign. Those sanctions are likely to be approved by US President Donald Trump, even though it places him in a politically difficult situation. Since becoming President, Trump has developed a good working relationship with the Russian leader, a person with whom he says he can “get along well”.
• Britain does not intend to lower taxes far below the European average in order to remain competitive after Brexit but rather expects to keep a recognisably European economic and social model, finance minister Philip Hammond said.
• German monthly retail sales rose far more than expected in June, data showed on Monday, boosting expectations that private consumption will make a significant contribution to growth in Europe's largest economy this year.
The volatile indicator, which is often subject to revision, showed retail sales rose by 1.1 percent on the month in real terms, the Federal Statistics Office said.
• Oil prices hit a two-month high on Monday, lifted by a tightening U.S. crude market and the threat of sanctions against OPEC-member Venezuela.
U.S. West Texas Intermediate (WTI) futures briefly jumped over $50 per barrel on Monday and were at $49.97 per barrel at 0654 GMT, still up 25 cents, or0.5 percent from their last close. That means that virtually the entire WTI curve has moved over $50 per barrel.
Brent crude futures were at $52.85 per barrel, up 33 cents or 0.6 percent. Prices hit $52.90 per barrel earlier in the day, their highest since May 25.
Reference: Reuters
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