Even airline stocks, which have been the hardest hit by the pandemic, are gaining some ground. The mood on markets is upbeat due to data signaling a quick recovery and large stimulus plans.

However, there seems to be a growing disconnect between markets and the real economy, with million of people across the globe facing unemployment.

In the U.S., things are far from rosy. Covid-19 deaths reached more than 105,000, tensions with China are increasing and large-scale riots are multiplying following the death of George Floyd, victim of police violence. Yesterday, the U.S. President threatened to deploy the military if calm does not return. Donald Trump doesn't seem to want to unite the country. 

The international relations notebook is filling up this week with a possible Opec+ meeting as early as Thursday, rather than next week, to discuss an extension of pumping restrictions. After the chaos of negative prices on WTI, the situation has stabilized, helped by the first signs of economic recovery. But the market remains fragile.

But you know what? Financial markets don't really care. The U.S. S&P 500 is only 5% behind its January 1st price. And the Nasdaq 100 is 1.4% off its all-time high from last February.

This week, Markit released the manufacturing PMIs for May. With the exception of China, which managed to get over the barrier with its Caixin Manufacturing PMI index at 50.7, machinery is struggling to get back on track despite easing lockdown restrictions. Overall, we are seeing a slowing of the decline, but no improvement as such. In Europe, the Italian index came out at 45.4, 40.6 for France and 36.6 for Germany. The overall European index came in at 39.4, compared with 33.4 the previous month. In Asia, the situation is the same (excluding China), with India at 30.8, Russia at 36.2 and Vietnam at 42.7. The same is true for America, with the USA at 39.8, Canada at 40.6 and Brazil at 38.3.

Few leading indicators today, but some local statistics such as Swiss retail sales, Spanish employment and monthly US vehicle sales compiled by Ward.