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The upcoming summit between the US and North Korea still looks to be on the cards, according to analysts at Danske Bank.

Key Quotes

“Apparently, US and North Korean officials are set to meet before 12 June to plan the summit. In addition, Japan’s Prime Minister Abe is set to meet US President Trump before the summit to discuss North Korea.”

“Economic data releases published in Japan overnight matched expectations. The Japanese unemployment rate was unchanged at 2.5%.”

“Italy remains in focus in financial markets and in particular the European fixed income market. Italian bond yields continued to surge yesterday and the Italian equity market lost more than 2%. Finally, some spillover to EUR/USD was likely part of the reason for the pair’s decline towards the 1.16 level.”

“In Turkey, TRY found support yesterday after the central bank announced a simplification of the monetary policy by moving the previous main policy rate (one-week repo rate) up to the late liquidity window rate (LLWR), which has served as the de facto policy rate over the past half year.”

“The price of Brent crude has stabilised after two days of steep drops. It is now trading around the USD75-76/bbl level. While the sell-off on Friday was due to a stronger supply outlook, the price decline yesterday was likely more due to sour risk sentiment in equity markets and the rise in the US dollar.”