Global stocks are entering the month close to new all-time highs, supported by the economic recovery from the coronavirus pandemic and high liquidity. Nevertheless, inflation fears and concerns that rising price pressures could lead central banks to cut support earlier than expected remain.
The US dollar weakened while the yuan remained stable due to China’s efforts to hold back the currency. The pound rose to its highest level in three years. Traders are optimistic about the UK’s economic recovery as the rollout of coronavirus vaccines is progressing.
Oil climbed with Brent oil going above $70 a barrel. The rise in prices came after the OPEC+ alliance forecast a tightening global market. In the commodities market, gold recovered this year’s losses with a 7.8% increase over May and continued its upward trajectory to add to its highest monthly rise since July. Investors turned to the yellow metal while expecting the release of new US economic data to provide further indications about inflation.
Key Events to Watch This Week:
Tuesday:
Reserve Bank of Australia Interest Rate Decision
OPEC+ meeting to Discuss Oil Production
Wednesday:
Speeches by Philadelphia, Chicago, Atlanta and Dallas Fed Presidents
Friday:
U.S. Employment Report for Previous Month
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