The US Personal Consumption Price Index (PCE) excluding food and energy components increased 0.5% after rising 0.7% in April. The American economy is on the rise, but labor market data remains the weak link of this dynamics. With the gradual economy open, inflation has begun to slow, but some sectors are still struggling to recover. However, analysts are confident that the situation should improve significantly by the fall. Especially because the bipartisan infrastructure development bill for $1.2 trillion was adopted last week.
Almost all European stock indexes increased on Friday, except French CAC 40, which fell by 0.12%. The fundamental picture in Western Europe is positive. With the growth rate of vaccination, business activity in the Eurozone has moved sharply upward. Inflation data will be released this week on Wednesday, which is directly related to the ECB monetary policy.
Compared to Friday, the situation on gold is almost unchanged. Gold and silver are now trading in a range. But the fundamental picture shows that precious metals will grow. However, it is worth keeping a close eye on US Treasury yields, which have an inverse correlation to gold.
OPEC+ countries will hold an official meeting this week on Thursday. Analysts expect production to increase as demand for fuel soars during the summer season. Oil prices hit another 2-year high on Friday. The technical analysis shows that the price of “black gold” reached the weekly resistance, so the price may consolidate for a while before it continues growing.
The Asian market is highly correlated with the US market at the moment. But investors are very concerned about a surge of coronavirus infection in some Asian countries. First of all, it’s Australia, Indonesia, Malaysia and Thailand. The Hong Kong Stock Exchange said Monday that the trading session in the stock markets had been postponed because of a “black rainstorm” warning.
Main market quotes:
- S&P 500 (F) 4,280.70 +14.21 (+0.33%)
- Dow Jones 34,433.84 +237.02 (+0.69%)
- DAX 15,607.97 +18.74 (+0.12%)
- FTSE 100 7,136.07 +26.10 (+0.37%)
- USD Index 91.81 0.00 (0.00%)
