Thursday once more proves to be a big day in terms of fundamental publications. The two main kinds of reports expected today include PMIs and employment data.
First off, China posted lower than expected Caixin PMI numbers for May (composite and services). Though both were still above 50, they were lower than last month’s results, which shows that China is experiencing some difficulties in its recovery from the pandemic.
In Europe, Spain and Italy posted better PMIs than expected, while Germany’s own reports met the forecasts perfectly. The eurozone-wide composite PMI came in at 57.1, exceeding investors’ expectations.
In the United Kingdom both the services and the composite PMI reports were also overwhelmingly positive, helping the already very stable British pound strengthen further.
The bulk of other interesting reports will come from the United States. The ADP employment report was published already, showing a significant improvement over the forecasts. Initial and continuing jobless claims are due later today, as are several speeches by Federal Reserve members.
As for the stock market today, traders might want to keep an eye on Redditors once more. The same community that pushed Gamestop shares higher in January and February is now showing its love for AMC (though it did also buy shares of the movie theater company even at the start of the year). AMC stock has risen astronomically in just a few days, but beware that the company will most likely continue to lose money, despite the public’s trust.
All major US stock indices will continue to trade lower today in anticipation of today’s and tomorrow’s economic reports from the United States.
The oil market is still doing well, though today we expect slightly lower prices as many investors close their positions to take their profit from oil reaching $70 per barrel. The Brent crude today is trading around $71.22, while the WTI has reached $68.69 per barrel. OPEC+ and other organizations are in agreement right now that the demand for oil will increase this year, which in turn is going to support higher oil prices.
