London, Wednesday, 01 June 2022
US Markets Summary
In June, shares remained volatile, with all three major indices concluding the first trading day of the month around 0.5 percent lower as an initial attempt to recover failed amid lingering fears of aggressive tightening to rein in decades-high inflation and a possible economic recession.
The Fed's effort to decrease its balance sheet began in June, and markets are pricing in a 50 basis point interest rate hike later this month.
Furthermore, manufacturing activity increased unexpectedly in May, indicating that demand for goods remained strong.
Meanwhile, a second report revealed that the number of job openings remains high. Such information fuelled fears that the Federal Reserve will continue to raise borrowing costs aggressively this year.
European Markets Summary
After closing May with losses, European equities markets closed lower on Wednesday, with Germany's DAX down about 0.5 percent, amid continued concerns about rising prices and the need for more aggressive central bank monetary policy tightening.
Manufacturing PMIs for Europe offered a mixed image, with factory growth growing in Germany and Spain but decreasing in France, Italy, and the Euro Area, according to the statistics.
At the same time, retail sales in Germany fell 5.4 percent in April as food costs rose, putting a damper on consumer spending.
(Written and edited by: The Decision Maker)