In New York, the market-wide S&P 500 gained +0.52% to 4'319.94 points and at times reached another record high. The Dow Jones Industrial ended Thursday's trading at 34'633.53 points (+0.38%) and is again approaching the mark of 35'000 points. In Asia's stock markets, the spread of the Delta Covid-19 variant causes restraint.
With excitement, investors expect the US labor market report to be published this afternoon at 14:30 (CET). Analysts expect a strong increase of 700'000 jobs (outside the agricultural sector). In May, an increase of 559'000 jobs was published. A positive sign was also the data published yesterday on initial claims for unemployment benefits in the US. Last week, the number of initial claims fell more than anticipated by 51'000 to 364'000.
The Institute for Supply Management's (ISM) Purchasing Managers Index slipped 0.6 points to 60.6 in June, slightly more than analysts (consensus 61.0) had expected. The ongoing recovery in the industrial sector is being weighed down by shortages of materials and labor.
European Central Bank (ECB) President and Chair of the Systemic Risk Board (ESRB) Christine Lagarde said that the recommendation to commercial banks to refrain from paying dividends could soon be withdrawn. Speaking at a hearing of the European Parliament's Economic and Monetary Affairs Committee, Lagarde said the ESRB council would discuss this at its next meeting on September 23.
The recovery in the industrial sector in the eurozone continued in June. The Purchasing Managers' Index (PMI) from London-based IHS Markit improved for the fourth month in a row, climbing to 63.4 points from 63.1 in May (analyst consensus 63.1). The survey results also make clear that companies have raised their prices more than at any time since the start of the data series due to strong demand coupled with limited supply.
In the 19-euro countries, the situation on the labor market improved on average. According to Eurostat, the statistics office, the unemployment rate fell from 8.1% in April to 7.95 in May. Accordingly, 12.8 million people in the eurozone were without a permanent job. In the EU, the figure was 15.28 million.
Industrial companies in the UK were surprisingly more negative in the latest survey by IHS Markit. For example, the Purchasing Managers' Index fell more sharply than expected in June from the record high of 65.6 points registered in May to 63.9 points. Nevertheless, the British industry remains on a solid growth path.
|08:00||GE||Retail Sales (May, y/y)||+4.4%|
|11:00||EZ||Producer Prices (June, y/y)||+7.6%|
|14:30||US||Non-Farm Payrolls (June)||+559,000|
|14:30||US||Unemployment Rate (June)||5.8%|
|14:30||US||Trade Balance (May)||USD -68.9bn|
|14:30||EZ||ECB President Lagarde speech|
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Source: LGT Bank (Switzerland) Ltd.
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