The MSCI Index was flat on early trading, staying within its two-year peak hit range last week. Japan Nikkei gained 0.2percent and Asian shares started the new month on a good footing holding a two year high on Monday. Positive vibes from China economy and a recovery in the European economy has seen global shares spike in the first half of this year.

In the US, S&P 500 had its biggest gain for the first half of this year in four years while the Nasdaq was its best in the last eight years. The U.S bond yields had a boost from its lows with the 10 year US Treasuries yield touching a one and a half month high of 2.320% Monday. This boost was aided by the inflation figures which showed a downward move together with a decline in annual core consumer prices by 1 1.4 percentage point.

In the currency market, the dollar traded at 112.435 yen, off last week high of 112.494. The dip was necessitated by the reaction to Japanese Prime Minister Shinzo Abe’s party suffering a defeat in yesterday’s election, signalling a potential trouble ahead for the premier. The euro traded around 1.1417 within the range of last week’s high of 1.1446. The Canadian dollar scaled back by 0.15 percentage points to C$1.2985 but well within reach of its strongest showing in none months last week due to higher oil prices and indication by the central bank of a rate hike.

Oil price had a boost Monday due to a fall in US oil drilling in months. Brent climbed by 16cents to $48.93 per barrel in early trading, its first weekly gain in six weeks by 5.2percent. The WTI rose by 0.5% to $46.28 per barrel adding to last week’s 7 percent gain. Although OPEC has pledged to cut supply, the current production is still high with June figures showing OPEC production up by 280k barrels per day.

Coming up today, we have England Manufacturing PMI which is a survey of about 600 purchasing managers who are asked to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. And at 15:00GMT there will be a release of ISM Manufacturing PMI in the US which shows the health of the economy based on surveyed purchasing managers in the manufacturing industry.