This week, most of the focus is on inflation expectations, as well as interest rate decisions in Europe and Canada

The US stock indices closed almost unchanged. The best performing index was the tech index Nasdaq, which increased by 0.3%, mainly due to the growth of FAANG companies (Facebook, Amazon, Apple, Netflix, Google). There is a lot of uncertainty among investors right now because everyone is waiting for inflation figures and no one is willing to take an additional risk before the statistics come out. But at the same time, meme-shares continue to pump one by one. Yesterday, Clover Health Investments (Ticker CLOV), which grew by 85%, was the growth leader. It became the most mentioned stock on the Reddit WallStreetBets forum.

European indices were mixed and closed the day with the mixed dynamics on Tuesday. The shares of telecom, tourism, and real estate companies became the leaders of the growth in Western Europe. Yesterday, Germany published a weak report on industrial production. The UK does not plan to lift the quarantine restrictions until the end of the month, this factor restrains the growth of the British currency.

Against the background of the signs of recovery in fuel demand in Europe and taking into account the fact that the prospect of resumption of Iranian oil supplies has weakened in the short term, all this plays in favor of the "black gold" price growth. Yesterday, WTI futures price reached $70.63 a barrel, renewing a two-year maximum again.

The situation with gold remains unchanged. While the US bond yields are at their lows, with inflation strengthening, the price of gold and silver will rise.

China has reported the inflation data. Rising commodity prices increased the factory inflation rate to its highest level since 2008 in May, which further aggravated already high concerns of investors about inflationary pressure. Chinese authorities announced that the producer price index is likely to continue rising in the second quarter, but then will start to decline. In Australia, the real estate sector is a hot topic. Rising prices and rapidly deteriorating housing affordability are putting serious pressure on the country's main stock index.

Main market quotes:

S&P 500 (F) 4,227.26 +0.74 (+0.02%)

Dow Jones 34,599.82 -30.42 (-0.09%)

DAX 15,640.60 -36.55 (-0.23%)

FTSE 100 7,095.09 +17.87 (+0.25%)

USD Index 90.12 +0.17 (+0.19%)

• – China Consumer Price Index (m/m) at 04:30 (GMT+3);
• – Canada BOC Rate Statement (m/m) at 17:30 (GMT+3);
• – US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
• – US 10-y Bond Auction at 20:01 (GMT+3).

by JustMarkets, 2021.06.09

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.