Tentative risk-on follows favourable..........>

FOREX: Tentative risk-on follows favourable European PMIs and surge in

Asia-Pacific equities

-PMIs across Europe generally fared better-than-expected this morning,

particularly in the UK, with a bumper Manufacturing PMI getting a lift from the

firmest stockpiling reading in G7 history as firms prepare for trade gyrations

following Brexit. This, allied with a firm showing from Asia-Pacific equity

markets, has pressed JPY to the bottom of the G10 table so far Monday and helped

buoy USD/JPY back above Y111.00 for the first time since Mar20. At the close in

Hong Kong, the Hang Seng Index entered bull market territory having rallied near

15% since the beginning of the year.

-Other G10 FX is fairly non-directional, however Scandi FX outperforms following

firm PMI data in Norway and Sweden. TRY underperforms broader EMFX following

local elections in Turkey over the weekend. Large cities turned their back on

President Erdogan, with Ankara voting against Erdogan's party for the first time

in 20 years.

-US retail sales, and manufacturing ISM take focus for the rest of the session.