The volatility index

The volatility index was down on Monday after rising to a six-month high last week. European indices started the week in positive territory, matching Asia–Pacific (APAC) performance. After an agitated week, the currency market remained fairly calm on Monday. The USD/JPY will be under scrutiny throughout the week as traders prepare for the Bank of Japan (BOJ) rate decision and quarterly outlook report on Friday.

US and UK earnings

On the corporate front, a few large UK companies are scheduled to produce numbers this week, including the UK's largest banks. Over in the US, four of the magnificent seven report this week: Tesla and Alphabet on Tuesday, Meta Platforms on Wednesday, and Microsoft on Thursday.

Tesla

Late on Friday, Tesla said on its website that it was knocking $2,000 off the price of its models X, S, and Y in the US. Then on Sunday, Tesla made a similar decision for its China, Europe, Middle East, and Africa markets. This concluded a tumultuous week that started with the announcement of a 10% cut in Tesla's global workforce, or about 14,000 jobs.

Boeing

Also scheduled this week: Boeing. The aircraft maker’s first quarter pretty much started with that Alaska Airlines flight making an emergency landing after a door plug blowout at 16,000 feet, which resulted in the grounding of 171 aircraft and FAA inquiries.

The commodity market

On the commodity market, oil prices were down after last week’s rise, triggered by fears of an escalation in the conflict in the Middle East. The price of copper reached $9,987 a tonne on Monday, a price level not reached since April 2022. The red metal's rally has been fuelled by supply risks and an improving demand prospect for energy transition metals. Nickel prices were also rising, supported by supply-side fears. It has been trading over $19,000 since last week.

Nickel ore stocks in Asia

As well as political and economic developments, including US and UK sanctions against Russian raw materials, the shortage of nickel ore stocks in Asia and the problems with nickel mines in Brazil and New Caledonia have caused prices for the battery and stainless steel raw material to jump.

Bitcoin

Bitcoin halving took effect late on Friday. Bitcoin traded flat in the immediate aftermath of the halving, holding steady at around 63,000 dollars. Analysts at JPMorgan and Deutsche Bank said the impact of this halving was mostly priced in and said there's unlikely to be a large upward trend this time.