London — Oil again hit record highs on Tuesday, as markets fend off concerns over rising inflation and anticipate US data, which should provide key clues to the health of the world’s largest economy. Has risen.
Risk markets balance traders with optimism that some major markets will reopen after the pandemic blockade, fearing that rising inflation could encourage central banks to curb stimulus. As a result, it has been on the rise in recent weeks.
Recovery from COVID-19 is still inadequate in many parts of the world and exports are reviving, but measures to contain new outbreaks still curb broader economic activity.
Against this backdrop, inflation in the euro area in May was below the European Central Bank’s target of 2% due to rising energy costs, but exceeded nearly 2% and is even higher by the end of the year. It was expected to be, and exceeded the expectation by 2%.
Later in the week, US employment data on Friday should also more reliably guide the Fed’s short-term policy measures.
Prior to that, MSCI’s widest gauge on the global stock market rose 0.3% to a record high. This was driven by a widespread rise across the major European indices, with the STOXX Europe 600 rising 1.1%.
S & P 500 and Nasdaq futures also rose 0.4% on Wall Street, showing a higher open.
Mark Hefere, Chief Investment Officer of UBS Global Wealth, said: management.
Increase in oil
Overnight, MSCI’s widest non-Japanese Asia-Pacific stock index rose 0.6%, hitting a monthly high and totaling more than 7% this year.
South Korea’s stock price rose 0.6% after a surge in exports in May, and China’s stock price rose 0.2% in response to data showing that factory activity expanded at the fastest pace in May this year.
This week’s main event is Friday’s US salary data, and the market is looking for a signal when the Federal Reserve Board will begin shrinking its bond-buying program.
Median forecasts added 650,000 jobs in May, but the results are uncertain due to the unexpectedly weak increase of 266,000 in April. Inflation data in the US last week was better than expected, analysts said, but another major employment mistake could delay the prospect of a stimulus contraction.
Societe Generale strategist Sebastian Gary expects employment data to be below or in line with consensus, but low equity volatility makes the market ready to jump above expectations. Said that.
“While we remain constructive about risk as we anticipate disappointment with NFP (Non-Agricultural Employment), the equity volatility market is likely to hit back from a fairly extreme low.” He said in a note to the customer.
The dollar rose 0.1% against the baskets of major peers and the yield on US dimes rose 2 basis points as traders waited for clues to the federal direction.
Meanwhile, Germany’s 10-year foreign bond yields have been stable at around -0.18%, and bond markets are catching news of a surge in eurozone inflation.
Gold rose 8% to above $ 1,900 this month due to concerns over global inflation, but Yellow Metal gave up the early rise in the session and the last trade of the day fell 0.2%.
Meanwhile, oil prices expanded ahead of the OPEC + meeting, with optimism that fuel demand will increase in the coming months as the US summer driving season begins.
August Brent crude futures rose 2% to $ 70.67 a barrel and US crude rose 2.6% to $ 68.06.