Macroeconomic/ geopolitical developments
- Another quiet week in financial markets up until Friday, despite a busy data calendar.
- Markets kicked into life after Friday’s US Employment report, which saw 559K jobs added in May, which was slightly worse than expectations.
- Over the weekend, the G7 agreed a global minimum corporate tax of 15%.
Global financial market developments
- European averages retained the lead in the past week, with the DAX positing a new record level and the EURO STOXX 50 hitting a new cycle high.
- Global stock averages pushed higher on Friday after a relatively sideways week after the US Employment report.
- Big Tech continued to rebound.
- The US Dollar Index rebounded from above key support, though lost ground on Friday.
- EURUSD has signalled a topping pattern, having been capped below key resistance.
- GBPUSD has also signalled a probable topping pattern
- USDJPY is strengthening further.
- Gold pushed higher again, but highlighted a topping threat
- Oil has bounced and extended higher.
- Copper has continued a setback, highlighting a topping threat.
Key this week
- Still looking for further easings of lockdown measures, particularly in Europe.
- Monitoring COVID-19 cases, hospitalisations and deaths globally, alongside the spread of the Delta variant in the UK and Europe.
- Central Bank Watch: We get the Bank of Canada (BoC) interest rate decision and statement on Wednesday and the European Central Bank (ECB) interest rate decision, statement and press conference on Thursday.
- Macroeconomic data: A quiet data week with the US CPI report on Thursday the standout.
|Date||Key Macroeconomic Events|
|07/06/21||China trade data; Japan Unemployment|
|08/06/21||Japan GDP; EU GDP; German ZEW Survey|
|09/06/21||Bank of Canada interest rate decision and statement; US CPI|
|10/06/21||European Central Bank interest rate decision, statement and press conference|
|11/06/21||UK GDP, Industrial and Manufacturing Production|