The first week of June 2021 has brought cheers on the face of investors. The European stocks were slightly higher due to revised Euro zone growth data. Some economists and financial experts were worried that the economy of most countries had contracted in the first quarter. However, this is incorrect. According to the European Union’s statistics office, Eurostat, the economies of 19 member countries are expanding. Industrial output is mostly stable, and there is no reason to worry. The recent session of the pan-European Stoxx 600 index closed with a growth of about 0.1% growth. The shares related to travel registered a growth of about 1.8%. Shares related to the auto sector performed quite impressively. The consumer product companies are performing quite impressively.
Most investors around the world monitor the movement of American markets. However, the market reactions were mixed. The Nasdaq 100 registered a growth of about 0.2 %. Growth of about 0.1% was noted in the MSCI World index. As per the latest reports, the unemployment rates have dropped to a very impressive level. More than half a million jobs were added in the month of May. Such optimistic reports maintain the momentum in the economy and the confidence of investors and industrialists is retained. Investors all around the world monitor agreements and tax reforms. The G-7 nations are considering an agreement that the largest corporations will be asked to pay a tax of 15% on their earnings. The smart and conscious investors are already accessing the impact of any such agreements. Some big companies have responded favorably to this agreement. Such landmark deals can help the government to collect astronomical sums of money as taxes from the giant firms like Facebook and Amazon. The investors are very curious to know about the reaction of the major tech firms.
The condition of the currencies is also stable. The British Pound rose by about 0.2%. The Euro also rose by 0.2%. The Japanese currency, the Yen, has also registered growth. Although the investors are concerned about monetary policies, yet the Asian stocks were stable. A growth of 0.32% was registered in Australia’s S&P/ASX 200. Japan’s Nikkei 225 has also risen by about 0.35%. According to the nation's first-quarter data, the economy is stable and not shrinking. This is a true fact that economies of most countries are reviving, but governments and policymakers are proceeding very cautiously. The price of yellow metal is rising and is close to about $1,900.
The demand for oil is rising in Europe. It is interesting to note that oil prices rose automatically prior to an OPEC meeting. It is expected that the demand for oil will grow extensively in the coming months because the driving season is about to begin in the USA. Travel sectors in most countries have commenced operations. So, demand for oil is likely to enhance.