(08 JUNE 2020)DAILY MARKET BRIEF 2:OPEC+ cut

<p>Activity across European futures hint at a marginally negative open on Monday. The FTSE is preparing to give back a part of its recent gains on firmer pound, however, in the dearth of concrete deterioration in Covid stats, the strong recovery in oil, commodity prices and improved demand in pharmaceuticals amid AstraZeneca-Gilead merger talks should easily attract dip buyers as British blue-chip prices retreat. WTI crude rallied past $40 a barrel as OPEC and Russia agreed to extend the supply cut by 9.7 million barrels per day, which equals roughly 10% of global daily production, for a month. Signs of improved global demand and rising expectation of a faster-than-earlier-thought economic recovery should continue supporting oil prices. Oil traders will likely be chasing dip-buying opportunities to carry the oil rally toward the 200-day moving average ($46.40 pb). In the FX markets, the US dollar was slightly better bid at the start of the week, while the US 10-year yield hit 0.90% for th</p>