Daily Market Commentary 1st June 2021

US and UK Markets were closed for a long weekend, it being Memorial Day in the USA, meaning markets experienced a very quiet start to what could be a huge week. There is a plethora of economic data releases coning this week, culminating in the all important Non Farm Payroll number, out Friday. European markets were flat and noted inflation rearing it’s ugly head. Spanish inflation hit a four year high and Germany CPI jumped to 2.5%p.a., despite being in virtual lockdown for much of the last year. Inflation is upon us and it is was stronger than statistics will reveal. Canada’s PPI spiked to 14.3%p.a., while Raw Material costs rocketed a gobsmacking 56.4%!

The closure of the US markets allowed the Dollar to soften and the GBP to regain 1.4200, while inflation numbers pushed the EUR back to 1.2220. Japanese Industrial Production (+15.4%), Housing Starts (+7%) and Retail Sales (+12%) all pointed to improved conditions in the Asia Pacific. The AUD traded up to 0.7730, while the NZD bounced to 0.7270, following a slight bounce in Business Confidence.

All market focus on economic data when UK and US markets reopen tonight.