- The UK stock-market was higher this week, as was Europe. Investors are taking a positive view on economic recovery, albeit with one eye on inflation and the prospect of over-heating.
- The global manufacturing PMI index reached an eleven-year high and the OECD (Organization for Economic Co-operation and Development) upgraded its global growth forecast for 2021.
- The number of new UK cases of the coronavirus Delta variant has increased strongly but Boris Johnson said there is not enough evidence yet to delay the easing of lockdown restrictions later this month.
- Our Breadth indicator stayed positive and our Momentum Indicator ticked back up.
- The US stock-market was higher last week with the energy sector out-performing on the back of rising oil prices. Markets traded cautiously for most of the week ahead of Friday’s important US jobs report.
- On Thursday, ADP, the payrolls processor, released data indicating that Friday’s report could be better-than-expected and the expectation was for an extra 671,000 jobs added in May. In the event the data showed 559,000 jobs added, much less than forecast and easing concerns that the economy is over-heating. The market rallied on the news.
- The main focus once again this week will be US data which may give investors clues regarding the future path of inflation and the possible response from the Fed. May’s US CPI (Consumer Price Index) data is due on Thursday.
- Our Breadth Indicator stayed positive and our Momentum Indicator ticked back up.
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