Written by Norman Isaac Mwambazi

Markets wrap: Global stocks, futures rise on positive data; oil jumps

Investors disappointed and beaten by the continued tumbling of the cryptocurrency market should take refuge in the recent rising of …

Investors disappointed and beaten by the continued tumbling of the cryptocurrency market should take refuge in the recent rising of the global stock market. Over the weekend, global stocks rose with U.S. equity futures, commodities like copper and oil all jumped as a result of positive economic readings around major global economies drove optimism in the recovery from the COVID-19 pandemic.

Stocks

In Europe, the Stoxx Europe 600 Index rose 1%, led higher by cyclical shares. This is attributed to data that shows that factories in Europe are getting overwhelmed by the surging demand for goods and services and are struggling to keep up.

In Germany, reports show that the unemployment rate that had surged last year as a result of the COVID-19 pandemic effect on employers that laid off workers has significantly dropped as more and more people go back to work.

In Asia, despite COVID-19 outbursts in certain countries, reports coming out from that side signal a significant growth in the manufacturing sector which has helped send a measurable amount of Asia-Pacific equities to the highest in over a month.

Data for Asia markets

Name
Country
Last
Prev. Close
+/-
%
Time
Date
YTD
1 Year
Australia All Ordinaries
Australia
7,392.10
7,406.70
-14.6
-0.2%
8:11:14 AM
6/1/2021
6.3%
24.48%
CSI 100
China
5,405.03
5,419.15
-14.12
-0.26%
9:00:38 AM
5/31/2021
0.29%
33.3%
CSI 300
China
5,331.57
5,321.09
10.48
0.2%
9:00:38 AM
5/31/2021
1.21%
34.25%
CSI 500
China
6,728.99
6,668.17
60.82
0.91%
9:01:08 AM
5/31/2021
3.8%
20.82%
CSI 800
China
5,546.75
5,526.85
19.9
0.36%
9:01:08 AM
5/31/2021
1.79%
30.91%
DAXglobal China Urbanization EUR (PR)
China
263.56
264.02
-0.46
-0.17%
8:14:00 PM
6/1/2021
2.15%
-4.3%
DAXglobal China Urbanization EUR (TR)
China
396.99
396.74
0.25
0.06%
8:14:00 PM
6/1/2021
2.94%
-0.88%
DBIX India Net
India
914.26
908.65
5.61
0.62%
8:14:00 PM
6/1/2021
25.68%
87.48%
Hang Seng
Hong Kong
29,445.53
29,084.76
360.77
1.24%
9:51:00 AM
6/1/2021
7.18%
24.07%
Hang Seng China Enterprise
Hong Kong
10,980.11
10,856.46
123.65
1.14%
9:51:00 AM
6/1/2021
2.4%
11.66%
IDX
Indonesia
5,947.46
5,848.62
98.85
1.69%
10:15:00 AM
5/31/2021
-2.58%
22.69%
NIKKEI 225
Japan
28,824.20
28,860.08
-35.88
-0.12%
8:00:00 AM
6/1/2021
5.74%
30.65%
S&P ASX 20
Australia
4,044.60
4,057.20
-12.6
-0.31%
8:11:14 AM
6/1/2021
9.96%
27.04%
S&P ASX 200
Australia
7,142.60
7,161.60
-19
-0.27%
8:11:14 AM
6/1/2021
6.86%
22.74%
S&P ASX 300
Australia
7,137.50
7,155.60
-18.1
-0.25%
8:11:14 AM
6/1/2021
7.01%
23.3%
S&P ASX 50
Australia
6,917.50
6,936.20
-18.7
-0.27%
8:11:14 AM
6/1/2021
8%
21.64%
S&P ASX MidCap50
Australia
8,685.60
8,689.90
-4.3
-0.05%
8:11:14 AM
6/1/2021
3.78%
32.73%
SENSEX
India
51,937.44
51,422.88
514.56
1%
2:29:00 PM
5/31/2021
7.81%
55.95%
SSE 100
China
7,323.07
7,239.85
83.22
1.15%
9:01:08 AM
5/31/2021
3.35%
23.86%
SSE 180
China
10,870.21
10,861.08
9.13
0.08%
9:00:38 AM
5/31/2021
1.11%
29.38%
SSE 380
China
6,115.74
6,061.24
54.5
0.9%
9:01:08 AM
5/31/2021
3.72%
22.69%
SSE 50
China
3,650.22
3,659.30
-9.07
-0.25%
9:00:38 AM
5/31/2021
0.19%
27.17%
Shanghai Composite
China
3,615.48
3,600.78
14.69
0.41%
9:01:08 AM
5/31/2021
3.21%
24.01%
Shenzhen Composite Index
China
2,419.76
2,393.48
26.27
1.1%
9:00:05 AM
5/31/2021
1.39%
31.3%
Shenzhen Index A
China
2,532.05
2,504.54
27.51
1.1%
9:00:05 AM
5/31/2021
1.39%
31.29%
Shenzhen Index B
China
1,159.80
1,153.71
6.08
0.53%
9:00:05 AM
5/31/2021
4.62%
35.4%
TOPIX
Japan
1,926.18
1,922.98
3.2
0.17%
8:00:02 AM
6/1/2021
7.33%
22.78%
TOPIX 100
Japan
1,259.75
1,258.01
1.74
0.14%
8:00:15 AM
6/1/2021
7.87%
25.28%
TOPIX 500
Japan
1,500.06
1,498.05
2.01
0.13%
8:00:02 AM
6/1/2021
7.51%
23.67%
Source: Market Insider.

In the U.S, stocks have slightly tumbled today, Tuesday, June 1, 2021, after reported data showed that the U.S. manufacturing sector continues to be affected by rising commodities prices despite recovery signals from pandemic effects.

The data has also shown that this sector still faces the problem of shortage of materials shortages and difficulties in the labour market. It has been reported lately that although jobless claims keep falling every month, some people are unwilling to go back to jobs as they prefer to keep enjoying unemployment benefits.

After the release of the manufacturing data, the benchmark S&P 500 traded essentially flat and the tech-heavy Nasdaq Composite Index also hovered near the flat line. Prior to this, the S&P has been advancing for four consecutive months. The only winner is the Dow Jones Industrial Average (DJIA), which rose about 70 points, or 0.2%.

Oil

Moving on to commodities, the Organisation of Petroleum Exporting Countries (OPEC) forecast a tightening global market, which sent West Texas Intermediate (WTI) crude futures to their highest in more than two years. Other commodities like iron ore and copper also pushed higher.

Global outlook

With gains in Europe, Asia, and the U.S. stocks expected to pull through, global stocks are starting off June near record highs. These gains are attributed to the recovery of the global economy from the health crisis caused by the COVID-19 pandemic and ample liquidity provided by the governments to their economies.

However, there are concerns from investors and industry players that this recovery and stabilisation of the economy could force central banks to withdraw support earlier than anticipated. It should be noted that in the U.S., the Federal Reserve Bank has kept interest rates to near-zero levels throughout the pandemic, among other measures aimed at keeping the economy afloat.

Key events to watch this week

Tuesday: OPEC+ meets to review oil production levels

Wednesday: Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak

Friday: Labour Department releases U.S. employment report for May.

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 rose 1.1% as of 10:45 a.m. London time
  • The MSCI Asia Pacific Index rose 0.4%
  • The MSCI Emerging Markets Index rose 0.6%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.2231
  • The Japanese yen was little changed at 109.60 per dollar
  • The offshore yuan fell 0.1% to 6.3792 per dollar
  • The British pound fell 0.2% to $1.4183

Bonds

  • The yield on 10-year Treasuries advanced two basis points to 1.61%
  • Germany’s 10-year yield was little changed at -0.18%
  • Britain’s 10-year yield advanced two basis points to 0.81%
  • Commodities
  • Brent crude rose 2.1% to $71 a barrel
  • Spot gold was a little changed.

PS: Prices quoted here can change at any time.