European stocks rose Monday afternoon after the EU reported a strong growth on its PMI, from 53.8 to 56.9.

Meanwhile, US indices closed in different directions last week, with Dow Jones gaining 0.4%, while S&P 500 and Nasdaq lost 0.1% and 0.5%, respectively. This suggests that even though the market is under a correction, there is a chance that US stocks will hit new highs, thanks to the ongoing economic recovery. But the indices should remain calm this week, except on Thursday, when the US releases its latest report on durable goods and weekly employment.

Meanwhile, a rather moderate growth was observed in the Asian markets. Japan indices grew 0.3%, while China indices rose by 0.1%. S&P 500 futures also increased by 0.3%.

Important news for this week:

The US Senate Committee on Banking, Housing, and Urban Affairs is holding a hearing on Wednesday to discuss how the US will recover faster from the COVID-19 pandemic.

And on Thursday, US President Joe Biden will unveil the first detailed budget proposal in his tenure, suggesting a range of priorities from defense spending to deficit reduction.

As for Europe, Germany will publish its 1st quarter GDP on Tuesday, followed by the report on business environment, current situation and economic expectations from the IFO.

With regards to the world's epidemiological situation, less than 500,000 new COVID-19 cases were recorded on Sunday. India saw a decrease to 223,000, while Brazil recorded less than 40,000 incidents. A sharp decline to 13,500 was also observed in the US, thanks to mass vaccination. Europe also saw quite a huge progress. For example, France listed only 9,700 cases.

On the topic of macro statistics, US recorded a 2.7% decline in home sales last April, but this, oddly enough, is positive for the market because the recent rise in property prices has created a risk on it.

The oil market is also seeking support after last week's plunge, although Brent gained 0.7% this morning, thereby hitting a price of $ 66.90. Progress in the negotiations between US and Iran is expected to bring oil to $ 70. But the range for today is projected to be $ 65.00 - $ 68.50.

Also on Sunday, EU accused Belarus of terrorism, when a Ryanair plane was hijacked and forced to land in Minsk in order to arrest one of the passenger. Apparently, a fighter jet threatened to shoot the plane down if it did not land, not considering the civilians riding on it. Belarus wanted to arrest a young journalist who spoke in opposition against Alexander Lukashenko. Foreign ministers from the United States, Britain and Germany made very harsh statements against the Belarus president, condemning the act of air piracy on his part. They also demanded thorough investigation and threatened to close the flights of foreign ships over Belarus.

Forecasts:

S&P 500 is currently at 4.155 points. It will close at 4.110 - 4.200 points today;

The USD index is currently at 89.90, but it is expected to close around 89.60 - 90.20 today;

USD / CAD currently costs 1.2070, but it is expected to trade between 1.2000 - 1.2150 today.

Conclusion: The US market hit yearly highs, but the upside potential is small. Most likely, the correction will continue, and the indices will remain in the current ranges.