A week in review – 03/06/22



It was a particularly busy week on the Eurozone economic calendar.

Key statistics included private sector PMI and inflation figures for member states and the eurozone.

A resumption of inflationary pressure, according to preliminary figures for May, has put pressure on the majors.

The euro zone’s annual inflation rate accelerated from 7.4% to 8.1%.

Private sector PMIs disappointed, however.

In May, the Eurozone manufacturing PMI fell from 55.5 to 54.6, with the services PMI dropping from 57.7 to 56.1. As a result, the composite PMI fell from 55.8 to 54.9.

On the monetary policy front, bets on dropping negative rates also tested support.

The United States

During the first half of the week, consumer confidence and manufacturing PMI numbers supported the dollar.

The CB consumer confidence index rose from 108.6 to 106.4, while the ISM manufacturing PMI rose from 55.4 to 56.1. Economists forecast the CB Consumer Confidence Index to fall to 103.9.

On Thursday, ADP’s non-farm payrolls numbers disappointed ahead of Friday’s all-important NFP numbers.

Non-farm payrolls increased by 390,000 in May, following a jump of 436,000 in April. Despite this increase, the unemployment rate remained stable at 3.6% due to an increase in the activity rate from 62.2% to 62.3%.

market movers

From DAXit was a bullish week for the automotive sector. BMW and volkswagen increased by 2.67% and 2.92% respectively. Continental and Daimler recorded gains of 1.53% and 2.01%, respectively.

It was a mixed week for the banking sector. German Bank fell 1.85%, while Commerzbank increased by 0.99%.

From the CACit was also a mixed week for French banks. Gen. Soc. gained 0.40%, while Agricultural credit down 11.20%. BNP Paribas ends the week down 1.85%.

The French automotive sector had a mixed week. Stellantis SA fell by 0.03%, while Renault increased by 2.34%.

Air France-KLM fell by 4.74%, with Airbus ending the week down 2.84%.

On the VIX index

In the week ending June 3, the VIX fell for a fourth out of five weeks.

After a loss of 12.61% from the previous week, the VIX fell 3.62% to end the week at 24.79.

2 days in the red over 4 sessions, including a drop of 1.91% on Wednesday, did the damage.

For the week, the S&P500 fell 1.20%, with the Dow Jones and NASDAQ posting losses of 0.94% and 1.20%, respectively.


Comments are closed.