Here is what you need to know on Monday, April 3:

Markets have started the week on a cautious note and the US Dollar has kept its footing after having gathered strength against its major rivals on the last day of March. S&P Global will publish revisions to Manufacturing and Services PMI surveys for March and the ISM Manufacturing PMI will be featured in the US economic docket. The Bank of Canada (BOC) will also release its quarterly Business Outlook Survey.

Saudi Arabia, Russia, the United Arab Emirates and other OPEC producers have announced that they have agreed to cut oil output by a total of around 1.16 million barrels per day from May until the end of 2023. Crude oil prices opened with a significant bullish gap and the barrel of West Texas Intermediate reached its highest level since late January at $81.50 before retreating below $80 in the European morning. Rising energy prices seem to be weighing on market sentiment with US stock index futures trading deep in negative territory in the early European session. During the Asian trading hours, the data from China showed that Caixing Manufacturing PMI declined to 50 in March from 51.6 in February, compared to the market expectation of 51.7.

In the meantime, the US Dollar Index clings to modest daily gains at around 103.00 while the 10-year US Treasury bond yield rises more than 1% on the day above 3.5%.