Stock averages rally on US Employment report

Intermediate

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%.
G7 corporate tax

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.
DAX chart
  • 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.
DXY chart

Key this week

  • Geopolitics:
    • 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.
DateKey Macroeconomic Events
07/06/21China trade data; Japan Unemployment
08/06/21Japan GDP; EU GDP; German ZEW Survey
09/06/21Bank of Canada interest rate decision and statement; US CPI
10/06/21European Central Bank interest rate decision, statement and press conference
11/06/21UK GDP, Industrial and Manufacturing Production

Editor in chief

Steve Miley is the Market Chartist and has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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