Daily summary: Apple spoiled positive mood among investors

• Apple (AAPL.US) is planning to close some of its US stores
• Coronavirus cases continue to rise across the US
• Oil price highest since the beginning of March

European indices finished today's session in green. The European Council held a virtual meeting today to discuss the European Commission's €750 billion coronavirus recovery plan. The four hours long discussions  are only the beginning of negotiations  on how the amount should be allocated among individual  member countries and the use of the found, either by loans or grants. ECB President Christine Lagarde warned that the full effects of the coronavirus crisis still need to be felt in the labor market. It seems that European investors moved away from fears of a second wave of coronavirus infections, despite the fact that in Spain, daily coronavirus cases resurged by over 500 in the last 24 hours, which was not seen since end-May. Meanwhile retail sales in the UK rose at a record 12% in May, more than doubling market forecasts of 5.7% while the budget gap reached a new record high. Among single stocks, Wirecard (WDI.DE) sinked 35%, extending a 60% plunge from Thursday, after the CEO Markus Braun resigned following EY’s decision to decline to sign off 2019 full-year accounts due to a missing $2.1 billion. During today’s session DAX gained 0.6 5, CAC40 added 0.4 % and FTSE 100 finished 1.1% higher. For the week, DAX added 3.4%, CAC 40 was up 2.9%, FTSE 100 advanced 3.1%.

US indices launched final session of the week higher. Moods were boosted after China confirmed that it plans to accelerate purchases of US agricultural products in order to fulfill the phase one trade deal. This statement came after President Trump announced that 'complete decoupling' from China is still possible. These positive news overshadowed the fact that the number of new COVID-19 cases is rising sharply in Texas, California, Arizona and Florida and both China and Japan reported new infections. New Florida coronavirus reported a record 3822 new cases compare to  3207 from yesterday. California, Florida and North Carolina officials urged mandatory mask use on Thursday. However US stocks erased earlier gains in the late afternoon after  Apple announced that is planning to close again some of its US stores in Florida, Arizona, North Carolina and South Carolina  due to a sharp increase of the new coronavirus cases. Dow Jones fell 0.37 %, the S&P 500  dropped 0.24 % and the Nasdaq 100 rose 0.40 %.

Today's Canadian retail sales figures came in well below expectations. Retail sales fell by 26.4% MoM while analysts expected a decline of 15.1% MoM. However, it is worth remembering that today's data concerned April, which is theoretically the worst month of the pandemic. However, the next months should be better, based at least on US retail sales data.

Oil prices climbed over 3% during today's trading session, with WTI futures at near $40.2 a barrel and Brent crude around $42.7 a barrel, a level last seen on March 6th. Oil prices are heading towards 10% weekly gains as investors welcomed the fact that global oil demand is recovering. Also, OPEC+ pledged to curb production, with both Iraq and Kazakhstan willing to compensate for overproduction in May.

As usual, Monday is light in terms of macroeconomic releases. Investors will get to know PBoC Interest Rate Decision  and US Existing Home Sales figures. Last but not least, BoC's Governor Macklem is scheduled to speak about monetary policy in the context of COVID-19 at the Canadian Clubs and Cercles canadiens event.  Also FED Chair Powell is scheduled to speak at a Youngstown community event, in Ohio today late afternoon.

Since Tuesday, the euro lost around 1.3% against the greenback amid doubts on the feasibility of the €750 billion Recovery Fund Plan. During today’s session EURUSD broke below 1.1211 resistance. Should downbeat  moods prevail, support at 1.1154 may come into play. Source: xStation5