Skip to main content Skip to site footer

You are using an outdated browser. Please upgrade your browser to improve your experience.

Archinomics Weekly - Monday 7th June 2021

2 years ago

the
MARKETS

Equities

US equity markets crept higher, boosted by strong macro data and led by the energy sector. European markets also advanced, although were held in check by inflationary fears. Japan’s stock markets were mixed, as the government extended the Covid-19 state of emergency in Tokyo, Osaka and seven other areas. China saw profit taking after three weeks of gains.

Bonds

The yield on benchmark 10-year US Treasury bonds fell back, and prices rose, after the May unemployment report. Core eurozone bond yields also drifted lower, on gathering expectations that the European Central Bank (ECB) bond-buying programme would be maintained. Yields in peripheral European bond markets moved in line with the core. Corporate bond markets traded quietly on light volumes, while the high yield market was equally subdued. Emerging market debt outperformed the global aggregate index.

Currencies

The euro slipped against the dollar and the yen, while remaining flat against sterling. The dollar rose against all majors, except the yen, which was firmer across the board.

Commodities

Oil prices hit the highest level for two years after OPEC member states forecast an orderly return of Iranian production, thereby maintaining ‘relative stability’.

Responsible investing

The G7 reached initial agreement on a global minimum tax rate of 15%, aiming to ensure that countries have the right to tax a proportion of the profits of large profitable multinationals in the locations where it is generated.

MACROECONOMIC
UPDATE

US non-farm payrolls fell short of expectations, coming in at 559,000 against consensus forecast of 675,000, while the unemployment rate dropped from 6.1% to 5.8%.


The UN’s Food and Agriculture monthly index jumped by 40% y/y, the highest monthly rise in a decade, which could be passed on to consumers in developed markets.


US ISM Services index for May jumped to 64 from 62.7, while the PMI Services index hit 70.4 as the sector caught up with the recovery in the Manufacturing sector.

on the
RADAR

US May headline CPI are forecast to rise further to 4.7%, after 4.2% in April.


The monthly meeting of the ECB is unlikely to bring any changes in policy, although adjustments to the emergency bond-buying programme could be discussed.

Listen to our weekly podcast for more information and our experts’ insights.

Architas

Latest investment news

Insight

Archinomics Monthly - October 2023

Article | Investments | 06/11/2023

Central banks in developed markets reinforced the message that rates will need to stay high for some considerable time to bring inflation back to target, dashing hopes of substantial cuts next year. In contrast, Brazil cut rates for the second time this cycle, while Poland lowered borrowing costs for the first time in more than three years.

Insight

Archinomics Monthly - September 2023

Article | Investments | 05/10/2023

Central banks in developed markets reinforced the message that rates will need to stay high for some considerable time to bring inflation back to target, dashing hopes of substantial cuts next year. In contrast, Brazil cut rates for the second time this cycle, while Poland lowered borrowing costs for the first time in more than three years.

Insight

Archinomics Monthly - August 2023

Article | Investments | 06/09/2023

China’s economic activity remained under pressure. Exports tumbled 14.5% year on year in July, the steepest fall since the start of the pandemic, while imports fell 12.4% on a year-on-year basis.

We use cookies to give you the best possible experience of our website. If you continue, we'll assume you are happy for your web browser to receive all cookies from our website. See our cookie policy for more information on cookies and how we manage them.