US stocks showed minimal change on Monday, perhaps not daring to storm all-time highs. Dow Jones and S&P 500 slipped by 0.4% and 0.1%, while Nasdaq gained 0.5%.
As for the oil market, prices declined by 0.7%, but Brent remains above $ 71, which is its highest value since 2018. OPEC said world oil reserves will continue to decrease, thanks to the implemented production cuts and growing global demand. In April, stocks in OECD countries fell by 6.9 million, and over the year dropped by 160 million.
Asian markets also dipped this morning, with China indices falling 1.1% and Japan indices by 0.2%. Apparently, Japan's GDP declined in the 1st quarter, shrinking by 1% compared to the previous quarter.
On the bright side, the situation with COVID-19 is improving, and on Monday, the total number of new cases was only 313,000. India recorded 87,000, while US listed 12,000. Cases in UK and Europe decreased as well, falling to 6,000 and below 5,000, respectively. Joe Biden and Boris Johnson urged other G7 members to be more active in promoting COVID-19 vaccines, pointing out the great success in US and Europe.
With regards to macro statistics, Germany reported that industrial orders declined 0.2% in April, which is antithetical to the 3.9% growth a month earlier.
Another good news is the US approval of a new drug for Alzheimer's, but some doctors still have doubts about the effectiveness of the medicine. Nevertheless, shares of Biogen increased, which contributed to the value of the S&P 500. Yesterday, the index closed at 4.226 points, and today it is projected to reach at 4.180 - 4.260 points.
G7 countries also struck a deal to raise the minimum corporate tax rate of multinational companies. Hence, yesterday, the USD index closed at 90.0 points, and is expected to range at 89.50 - 90.50 today.
And currently, USD/CAD costs 1.2080, also thanks to the slight decline in oil. But soon, price will decrease around 1.2000 - 1.2150.
Conclusion: The US market will move depending on the reports on US inflation and weekly employment, which will be released in the coming days.