Good news from China supported European indexes

Some positive news from China concerning measures supporting the economy – the relaxation of Covid controls and health restrictions in major Chinese cities such as Beijing and Shanghai – supported European indices at the beginning of this week, even in the absence of Wall Street due to Memorial Day.

Key figures from Monday’s trading session:

• CAC 40 = +0.72%
• DAX 40 = +0.79%
• EUROSTOXX 50 = +0.86%
• Oil = around $121 a barrel
• Gold = around $1,855 per ounce
• EUR/USD = around 1.0779
• GBP/USD = around 1.2655
• AUD/USD = around 0.7169
• USD/JPY = around 127.56
• USD/CAD = around 1.2661
• Bitcoin = around $30,625
• Ethereum = around $1,915

Key facts from Monday’s trading session:

• Yesterday, Australian stocks hit a more than three-week high.
• The CAC40 posted a fourth straight session of gains, a first since November 2021.
• German inflation hit its highest level in 50 years, and Spanish inflation is higher than expected.
• Impasse over Russian oil ban in Europe.
• Oil prices are above $120 a barrel, their highest level in 2 months.
• The UK imposed a windfall tax on energy companies to ease the country’s escalating cost of living crisis.
• Natural gas hit its highest level since 2008.
• The British pound lost around 8% against the dollar since the beginning of the year.
• CAD strengthens to its highest level since April, as the country’s current account surplus reached its highest level in 14 years.
• Bitcoin is close to a 2-week high above $30,000.

What else should you monitor this week?

On Tuesday

• Switzerland – Retail Sales (Apr)
• France – Consumer Spending (Apr)
• France – CPI
• France – GDP
• France – HICP
• Switzerland – GDP (Q1)
• Germany – German Unemployment Change & Unemployment Rate (May)
• Europe – ECB McCaul Speaks
• Italy – CPI (May)
• Europe – CPI
• Italy – Italian 10-Year BTP Auction
• Germany – German Buba Balz Speaks
• Europe – EU Leaders Summit
• Switzerland – SNB Gov Board Member Zurbrugg Speaks
• Canada – GDP
• USA – S&P/CS HPI Composite – 20 n.s.a. (Mar)
• USA – Chicago PMI (May)
• USA – CB Consumer Confidence (May)
• Australia – AIG Manufacturing Index (May)
• Japan – Capital Spending (Q1)
• Australia – GDP (Q1)
• Japan – BOJ Deputy Governor Wakatabe Speaks
• China – Caixin Manufacturing PMI (May)

On Wednesday

• United Kingdom – Nationwide HPI (May)
• Germany – Retail Sales (Apr)
• Spain – Manufacturing PMI (May)
• Switzerland – PMI (May)
• Italy – Manufacturing PMI (May)
• France – Manufacturing PMI (May)
• Germany – Manufacturing PMI (May)
• Europe – Manufacturing PMI (May)
• United Kingdom – Manufacturing PMI (May)
• Europe – Unemployment Rate (Apr)
• Europe – ECB President Lagarde Speaks
• USA – DP Nonfarm Employment Change (May)
• USA – Manufacturing PMI (May)
• USA – ISM Manufacturing PMI (May)
• USA – JOLTs Job Openings (Apr)
• Canada – BoC Rate Statement & Interest Rate Decision
• Europe – ECB’s Panetta Speaks
• USA – FOMC Member Williams Speaks
• Europe – ECB’s Lane Speaks
• USA – FOMC Member Bullard Speaks
• USA – Beige Book
• USA – API Weekly Crude Oil Stock
• Australia – Retail Sales (MoM)
• Australia – Trade Balance (Apr)
• Japan – BoJ Board Member Adachi Speaks
• Japan – 10-Year JGB Auction

On Thursday

• United Kingdom – Bank Holiday
• Switzerland – CPI (May)
• Spain – Unemployment Change
• Germany – German Buba Wuermeling Speaks
• USA – ADP Nonfarm Employment Change (May)
• USA – Initial Jobless Claims
• USA – Nonfarm Productivity (Q1)
• USA – Unit Labor Costs (Q1)
• Canada – Building Permits (Apr)
• USA – Factory Orders (Apr)
• USA – Crude Oil Inventories
• Germany – German Buba Vice President Buch Speaks
• USA – FOMC Member Mester Speaks
• Japan – Services PMI (May)
• Australia – Home Loans

On Friday

• United Kingdom – Bank Holiday
• China & Hong Kong – Dragon Boat Festival
• Germany – German Trade Balance (Apr)
• Spain – Services PMI (May)
• Italy – Services PMI (May)
• France – Services PMI (May)
• Germany – Services PMI (May)
• Europe – Markit Composite PMI (May)
• Europe – Services PMI (May)
• Europe – Retail Sales (Apr)
• Spain – Spanish 10-Year Obligacion Auction
• Europe – ECB’s Enria Speaks
• USA – Average Hourly Earnings (May)
• USA – Nonfarm Payrolls (May)
• USA – Unemployment Rate (May)
• Canada – Labor Productivity (QoQ) (Q1)
• USA – Markit Composite PMI (May)
• USA – Services PMI (May)
• USA – ISM Non-Manufacturing PMI (May)
• USA – FOMC Member Brainard Speaks
• USA – U.S. Baker Hughes Oil Rig Count