Headlines:ECB’s Lagarde: We are likely to be in a position to exit negative rates by end of Q3Germany May Ifo business climate index 93.0 vs 91.4 expectedIfo economist: There are no signs of a recession for nowSNB total sight deposits w.e. 20 May CHF 754.1 bn vs CHF 753.3 bn priorChina warns US not to underestimate its resolve on TaiwanBiden: US economy has problems but recession is not inevitableGermany says ready to go ahead with Russia oil embargo even without HungaryChina cabinet announces package of targeted support measures to bolster the economyBeijing reportedly mulls relaxing hotel quarantine to one week for international arrivalsMarkets:NZD leads, USD lags on the dayEuropean equities mostly higher, S&P 500 futures up 1.0%US 10-year yields up 4.5 bps to 2.83%Gold up 0.8% to $1,861.54WTI crude up 0.9% to $111.25The market is in a more positive mood to kick start the new week, with risk trades being spurred on after mostly coming under pressure over the past two months.Equities are hoping to post a bit more of a recovery with US futures keeping 1% higher, aiding the mood in Europe with major indices in the region also posting a slight advance on the session.The optimism was also helped a little as US president Biden said that China trade tariffs may be under consideration to be lifted/reduced but there was an exchange of blows regarding Taiwan.The dollar was pressured lower across the board on the better risk appetite with the antipodeans leading the charge notably. AUD/USD is up over 1% on a push above 0.7100 while NZD/USD is up over 1% as well, closing in on 0.6500.The euro got a notable nudge after ECB president Lagarde talked up rate hikes in her blog. She made mention that negative rates could be phased out by the end of Q3 and that saw the euro extend gains against the dollar, with EUR/USD rising from 1.0610 to 1.0680.GBP/USD also benefited from the dollar’s sluggishness, with the pair extending a breakout above 1.2500 to near 1.2600 currently.Elsewhere, precious metals and oil are also having a good day with gold up 0.8% to $1,861 and WTI crude pushing higher by nearly 1% to $111 on the day.