Top 5 Things to Know in the Market on Monday

1. Global stocks drift in thin trade; U.S., U.K., China closed

Global stock markets were mixed amid low trading volume on Monday, with holidays in the U.S., U.K. and China slowing trading activity around the world.

Asian stocks drifted lower in subdued trade, running short of incentives to push past two-year highs with many key markets closed for holidays.

In Europe, stocks across the continent fell slightly, pulling back further from their highest point in almost two years.

Stateside, Wall Street will be closed for Memorial Day, after ending mixed last Friday.

2. Dollar steady in quiet trade; British pound jumps

With major markets around the world closed for public holidays on Monday, most currency pairs treaded water to start the week, with no incentive to take new positions.

The dollar was little changed against a basket of the other major currencies on Monday, holding well above last week’s more than six-month lows (DXY).

Britain’s pound was the only substantive mover among major currencies, recovering some ground after weekend polls showed Prime Minister Theresa May is set to win next week’s elections even if the scale of victory is in question.

The pound inched up 0.3% in thin morning trade in New York, trading at 1.2840 (GBP/USD). Against the euro, sterling gained 0.3% to 87.07 (EUR/GBP).

3. Oil dips as traders weigh U.S. drilling, OPEC cuts

Oil prices started the week lower on Monday, as traders weighed rising U.S. drilling activity against ongoing efforts by major producers to cut output to reduce a global glut.

U.S. crude was at $49.58 a barrel, down 21 cents, or around 0.4%, while Brent lost 21 cents to $53.30.

4. Draghi takes center stage

European Central Bank President Mario Draghi is due to testify about the economy and monetary developments before the Economic and Monetary Affairs Committee, in Brussels, at 1300GMT (9:00AM ET) on Monday.

Last week, Draghi said there was “no reason to deviate from the indications” that the central bank has already laid down, suggesting that there would be no changes to monetary policy at the ECB’s upcoming meeting on June 8.

The euro was flat against the dollar, with EUR/USD last at 1.1181 after setting a six-and-a-half month high of 1.1267 last week.

5. North Korea fires another ballistic missile

Investors appear to have shrugged off any geopolitical worries stemming from yet another missile test carried out by North Korea on Monday.

North Korea fired what appeared to be a short-range ballistic missile that landed in the sea off its east coast, South Korea’s military said.

It was the ninth missile the hermit state has tested this year, as it faces increasing pressure from the U.S. and historical ally China over its missile testing program.

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