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LGT Navigator: Stock markets looking for new impetus as June kicks off

June 1, 2021

Without any impulses from the Anglo-Saxon equity exchanges, which were closed due to holidays, the end of the month in Europe yesterday proceeded as expected in a quiet manner. New impetus could be provided by today’s release of the latest purchasing managers' survey results.

Stock markets looking for new impetus as June kicks off

After the EuroStoxx 50 climbed last Friday to its highest level since the beginning of 2008, trading yesterday was without a clear trend in view of the holidays in the United States (Memorial Day) and the UK (Spring Bank Holiday). In addition, investors are waiting for the results of the monthly purchasing managers surveys, which will be released in the course of the day. At the end of the week, the US labor market statistics will be in focus, which is of greatest importance for the monetary policy direction of the Federal Reserve. The European benchmark index closed -0.76% lower at 4'039.46 points at the start of the week with low trading volumes, showing a monthly balance of +1.6%. In Asia this morning also showed no clear trend. In Tokyo, the Nikkei 225 is down -0.25% and the Shanghai Composite Index is losing -0.1%. The Hang Seng Index in Hong Kong, however, increases by +0.4%.

OECD shows more optimism in its economic outlook

The Organization for Economic Cooperation and Development (OECD) in Paris raised its forecast for global economic growth in the current year from +5.6% (in March) to +5.8%. Next year, the OECD expects a weakening of the growth trend and forecasts a global expansion of +4.4% (previously +4.0%).

Rising inflation rates in core euro countries

Against the backdrop of higher energy prices, consumer price inflation in Germany rose from 2.0% in the previous month to +2.5%, its highest level since September 2011. Since the temporary VAT cut expired at the end of 2020, the cost of living has increased for the fifth month in a row. Energy prices rose by +10% year-on-year.

In Italy, inflation climbed in May to its highest level since November 2018, with year-on-year inflation of +1.3% compared with +1.0% in April. However, economists had predicted even stronger inflation of +1.4%.

Consumer price inflation also continued to rise in Spain. In May, the annual inflation rate in the fourth-largest economy in the eurozone was +2.4%, compared with +2.0% in April.

Economic Indicators June 1

MEZ Country Indicator Last period
08:00 GE Retail Sales (April, y/y) +11.0%
09:00 SZ GDP Q1 (q/q) +0.3%
09:15 SP IHS Markit PMI Manufacturing (May) 57.7
09:30 SZ PMI Manufacturing (May) 69.6
09:45 IT IHS Markit PMI Manufacturing (May) 60.7
09:50 FR IHS Markit PMI Manufacturing (May) 59.2
09:55 GE IHS Markit PMI Manufacturing (May) 64.0
09:55 GE Unemployment Rate (May) 6.0%
10:00 EZ IHS Markit PMI Manufacturing (May) 62.8
10:30 UK IHS Markit PMI Manufacturing (May) 66.1
11:00 EZ Verbraucherpreise (Mai, y/y) +1.6%
11:00 EZ Arbeitslosenrate (Mai) 8.1%
11:00 IT GDP Q1 (q/q) -0.4%
15:45 US IHS Markit PMI Manufacturing (May) 61.5
16:00 US ISM PMI Manufacturing (May) 60.7


Earnings Calender June 1

Country Company Period
US Dell Q1
US Zoom Video Q1


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