Global stock markets continue to recover boosted by the gradual removal of lockdown restrictions and the implementation of stimulating monetary and fiscal policies by leading countries.
Another positive news came on Friday, when statistical data on the US labour market was presented, which turned out to be significantly better than expected. Non-farm payrolls report showed that 2.5 million jobs were created in May, while a decrease of 8 million was expected. The unemployment rate was 13.3% against a forecast of 19.7%.
NASDAQ 100 index on Friday reached a new historical maximum. S&P 500 finished the week at less than 6% of the all-time high reached in February. The growth leaders were companies in the aviation, financial, and oil sectors, as well as automakers.
Last week, the dollar continued to weaken against most currencies due to the low demand for safe-haven assets.
On Thursday, ECB held a meeting, following which euro rose to a 3-month maximum. The regulator decided to expand the quantitative easing program from 750 billion euros to 1,350 billion. ECB President Christine Lagarde said that ECB did not consider the possibility of launching a corporate bond purchase program.
The price of oil rose to a 3-month maximum amid a decision by OPEC + countries to extend the current record oil production cuts for a month. The number of production cuts will remain at 9.7 million barrels per day until the end of July. It was also agreed that countries that hadn’t complied with their commitments to cut production would have to compensate for exceeding quotas in July-September.
The price of gold fell to a one-month low amid low demand for safe-haven assets due to optimistic data on the US labour market.
Main events of the current week
- On Tuesday, data on the number of job openings in the United States will be presented.
- On Wednesday, data on the US consumer price index and crude oil inventories will be published. Fed will hold a monetary policy meeting. No changes in monetary policy are expected from the regulator. However, updated macroeconomic projections and FOMC monetary policy statement may affect financial markets.
- On Thursday, data on US jobless claims and producer price index will be published.
- On Friday, data on GDP and industrial production in the UK will be presented.