Skip navigation Scroll to top
Scroll to top

LGT Navigator: Stock markets looking for new impetus as June kicks off

June 1, 2021

Without any impulses from the Anglo-Saxon equity exchanges, which were closed due to holidays, the end of the month in Europe yesterday proceeded as expected in a quiet manner. New impetus could be provided by today’s release of the latest purchasing managers' survey results.

Stock markets looking for new impetus as June kicks off

After the EuroStoxx 50 climbed last Friday to its highest level since the beginning of 2008, trading yesterday was without a clear trend in view of the holidays in the United States (Memorial Day) and the UK (Spring Bank Holiday). In addition, investors are waiting for the results of the monthly purchasing managers surveys, which will be released in the course of the day. At the end of the week, the US labor market statistics will be in focus, which is of greatest importance for the monetary policy direction of the Federal Reserve. The European benchmark index closed -0.76% lower at 4'039.46 points at the start of the week with low trading volumes, showing a monthly balance of +1.6%. In Asia this morning also showed no clear trend. In Tokyo, the Nikkei 225 is down -0.25% and the Shanghai Composite Index is losing -0.1%. The Hang Seng Index in Hong Kong, however, increases by +0.4%.

OECD shows more optimism in its economic outlook

The Organization for Economic Cooperation and Development (OECD) in Paris raised its forecast for global economic growth in the current year from +5.6% (in March) to +5.8%. Next year, the OECD expects a weakening of the growth trend and forecasts a global expansion of +4.4% (previously +4.0%).

Rising inflation rates in core euro countries

Against the backdrop of higher energy prices, consumer price inflation in Germany rose from 2.0% in the previous month to +2.5%, its highest level since September 2011. Since the temporary VAT cut expired at the end of 2020, the cost of living has increased for the fifth month in a row. Energy prices rose by +10% year-on-year.

In Italy, inflation climbed in May to its highest level since November 2018, with year-on-year inflation of +1.3% compared with +1.0% in April. However, economists had predicted even stronger inflation of +1.4%.

Consumer price inflation also continued to rise in Spain. In May, the annual inflation rate in the fourth-largest economy in the eurozone was +2.4%, compared with +2.0% in April.

Economic Indicators June 1

MEZ Country Indicator Last period
08:00 GE Retail Sales (April, y/y) +11.0%
09:00 SZ GDP Q1 (q/q) +0.3%
09:15 SP IHS Markit PMI Manufacturing (May) 57.7
09:30 SZ PMI Manufacturing (May) 69.6
09:45 IT IHS Markit PMI Manufacturing (May) 60.7
09:50 FR IHS Markit PMI Manufacturing (May) 59.2
09:55 GE IHS Markit PMI Manufacturing (May) 64.0
09:55 GE Unemployment Rate (May) 6.0%
10:00 EZ IHS Markit PMI Manufacturing (May) 62.8
10:30 UK IHS Markit PMI Manufacturing (May) 66.1
11:00 EZ Verbraucherpreise (Mai, y/y) +1.6%
11:00 EZ Arbeitslosenrate (Mai) 8.1%
11:00 IT GDP Q1 (q/q) -0.4%
15:45 US IHS Markit PMI Manufacturing (May) 61.5
16:00 US ISM PMI Manufacturing (May) 60.7

 

Earnings Calender June 1

Country Company Period
US Dell Q1
US Zoom Video Q1

 

LGT helps you make informed investment decisions

All about global economic and market trends at a glance

Subscribe to LGT's research newsletters

You can also follow us on Facebook or LinkedIn – or visit MAG/NET and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: lgt.navigator@lgt.com
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.