The US dollar fell for the first time in four sessions as a rising central bank tide lifted assets across the board. Gold is within a whisker of all-time highs, the Nasdaq hit a new record and German 30 year bond rates returned to zero. Crude oil markets hit post-Covid highs, and cryptocurrencies also benefited from the historically high global liquidity.

European stocks missed out on the party, as news of an alleged massive fraud at German payment provider Wirecard weighed on sentiment. Analysts cited increasing virus infection rates. US stocks started their session lower, but ongoing enthusiasm for tech stocks turned the major indices around. Many investors expect that the political and economic costs make further widespread lockdowns unlikely.

Many professional investors continue to look at the global rally with disbelief, and data released over the next 24 hours could be crucial. PMIs for Japan, the UK, Germany, France and the US for June speak directly to current economic conditions, and may support or deny the current V-shaped recovery narrative. Estimates are for readings between 40 and 50, indicating slowing contraction and a big bounce back from May’s weakness.

Asia Pacific markets are set to respond to the positive moves, with futures pointing to opening gains for shares. Singapore CPI is expected to show a year-on-year decline in May of 0.9%, with the core reading at 0.3%. Regional currencies bounced back from recent weakness. The turnaround may bring additional international participation during trading today.