- The UK began a new phase of lockdown easing at the start of the week. Investors are weighing this and the pace of global economic recovery against inflation concerns and the rising number of coronavirus cases of the Indian variant. Boris Johnson warned that the variant could threaten further easing next month.
- Data from the UK Office for National Statistics showed the rate of unemployment fell to 4.8% in the first quarter, the largest quarterly decrease since 2015. The number of employees on payroll rose strongly by 97,000 between March and April.
- Annual inflation in the UK increased to 1.5% (1.4% forecasted) the highest reading since March last year.
- Our Breadth indicator stayed positive and our Momentum Indicator ticked higher again.
- The market declined to mid-week over inflation concerns and a sell-off in Bitcoin.
- Minutes from the US Fed’s April meeting hinted that the central bank could begin discussing a plan to taper its asset purchasing program “at some point” but Fed Chairman Jerome Powell said the recovery remains “uneven and far from complete”.
- Equities were more resilient on Thursday as crypto fell further and the market rallied back to end the week as traders began adding risk on improved initial jobless claims data.
- At the start of this week the S&P 500 index is printing close to last week’s high after Friday’s positive PMI data and ahead of a busy week of data releases.
- Our Breadth Indicator stayed positive but our Momentum Indicator ticked lower.
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