On the New York Stock Exchange, the indices were robust before the long weekend in view of recently quite solid economic data and the prospect of further fiscal policy support, but were unable to save the gains booked at the beginning of trading over the finish line. Profit-taking ensured that the Dow Jones Industrial ultimately only increased +0.19% to 34'529.45 points. The benchmark index thus posted a modest gain of +0.9% on a weekly basis. The S&P 500 +0.04% closed on Friday virtually unchanged from the previous day at 4'204.11 points (+0.08%). In the bond market, the yield on ten-year US government bonds eased slightly to 1.58%. In Asia, the worse-than-expected industrial production in Japan as well as the slightly lower purchasing managers' indices (PMI) in China caused a slightly negative start to the week.
The main event of the week is due on Friday when the latest US labor market figures are published. Analysts expect a strong increase of around +650'000 jobs, after significantly fewer jobs were created in April than forecasted.
Today, the Organization for Economic Cooperation and Development (OECD) is scheduled to present its latest economic forecasts at 10:00 am (CET). Against the backdrop of the progressing vaccination campaigns and the containment of the corona pandemic, a slightly confident outlook is expected.
ECB Director Isabel Schnabel expressed confidence that the economic outlook in the euro area has brightened considerably thanks to falling corona infection figures and progressing vaccination campaigns. Against this background, the Governing Council will decide on June 10 whether to continue the recently increased purchase volume of the PEPP pandemic program. The decisive factor will be the assessment of financing conditions and the inflation outlook.
German import prices increased by a stronger than expected +1.4% month-on-month and +10.3% year-on-year in April. On an annual basis, this was the strongest price increase recorded since December 2010. The increase in import prices was driven by energy prices, which rose by +101.3% year-on-year due to the base effect of the corona crisis, thus recording the highest annual rate of increase in over ten years. The development of import prices is regarded as an indicator of inflationary trends.
The French economy was once again in a “technical” recession in the first quarter. According to the revised data published on Friday, the economic output of the second-largest economy in the eurozone declined by -0.1% compared to the previous quarter. This comes after French GDP had already contracted by -1.5% in the final quarter of 2020. Due to the hard lockdown, private consumption stagnated and investments also increased only slightly at the beginning of the year. At the same time, higher energy prices drove inflation in France in May to its highest level since the end of 2018, with consumer prices rising by +1.8% year-on-year compared with an inflation rate of +1.6% in April.
|08:00||GE||Import Prices (May, y/y)||+6.9%|
|09:00||SP||Consumer Prices (May, y/y)||+2.0%|
|10:00||IT||Consumer Prices (May, y/y)||+1.0%|
|14:00||GE||Consumer Prices (May, y/y)||+2.1%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: firstname.lastname@example.org
Source: LGT Bank (Switzerland) Ltd.
Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.