We witnessed positive vibes in the markets worldwide on Friday followed by a surge in asset classes. It was reports release from Euro zone that testified the talks of a global recovery underway. Purchasing Managers Index numbers reported by Markit flash turned out to be better-than-expected. Composite PMI rose to 46.8 in the month of July, compared with the previous figure of 45.3. Manufacturing and services PMI were found to be 45.6 and 46.0 in the month of July, showing significant improvement against the June's figures.

These developments pressurized the dollar and it settled a tad down against the euro. The decline in the dollar provided another trigger in buying of riskier assets as the weaker dollar makes commodities cheaper for investors outside the U. S. Though the reports from University of Michigan were not as encouraging as the reports from the Euro zone, the investors found comfort in the latter reports and diversified to higher yielding assets like commodities and equities.

Today we have another set of housing numbers from the U. S. It is to be seen whether new home sales number comes out in line with the strong housing data reported last week or not.

In addition, building permits report should also be watched closely as any significant improvement in these numbers would give a thrust to industrial metals and other asset classes on the back of expectation of a rise in physical and investment demand in the near future.