The dollar index is near its lowest level in the last 3 months, and the downward trend is likely to continue

US stock indices were mixed last trading week, but the overall market rate decreased by 0.4%. The Nasdaq index performed the best, interrupting four-week series of decline. Stocks of cyclical companies from the financial, industrial, basic materials, and energy sectors became the growth leaders. The analysts expect that in the near future, the US economy will gain momentum due to the reopening of the economy and increase of the corporate profits of many companies, which is the basis of the stock market profitability. The question is, will it affect the further rise in inflation or not?

It is a bank holiday in many countries today. Canada is celebrating Victoria Day. Whit Monday is celebrated in Germany, France, and Switzerland.

Gold rose to its four-month highs. Despite the fact that the Federal Reserve officials are not going to change monetary policy anytime soon, many investors still have big fears about rising inflation which is forcing them to shift funds into protective assets such as gold and silver.

The price of "black gold" has no directional dynamics right now. First, oil rose due to concerns over the weather in the Gulf of Mexico, but by the end of the week, it fell in light of Iran negotiations. If the sanctions are lifted, Iranian oil may enter the market.

Asia-Pacific stock indices are showing weak upward momentum. There is an acceleration of vaccination rates in Japan, which is good for the Nikkei 225 index. This week, several central banks of New Zealand, South Korea, and Indonesia will hold meetings, which may have a significant impact on the dynamics of major indices in the region.

Main market quotes:

S&P 500 (F) 4,155.86 -3.26 (-0.08%)

Dow Jones 34,207.84 +123.69 (+0.36%)

DAX 15,437.51 +67.25 (+0.44%)

FTSE 100 7,018.05 -1.74 (-0.03%)

USD Index 90.03 +0.22 (+0.25%)

• – New Zealand Retail Sales (q/q) at 01:45 (GMT+3);
• – Japan BOE Governor Haruhiko Kuroda Speaks at 15:05 (GMT+3);
• – UK BOE Governor Andrew Bailey Speaks at 17:30 (GMT+3).

by JMarkets, 2021.05.24

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.