Data on Monday also showed that German EU-harmonized inflation came in at an annual 8.7% in May, significantly outstripping analyst expectations of 8.0% in a Reuters poll and marking a sharp incline from the 7.8% seen in April.
*French inflation also surpassed expectations in May to a record of 5.8%, up from 5.4% in April, preliminary data showed on Tuesday.*
*Investors were watching the data closely for indications as to the speed and scale of interest rate hikes that may be required from the European Central Bank from July onward.*
*Unilever shares climbed 8.9%* after the British consumer goods giant named American activist investor Nelson Peltz to its board.
Global markets are also reacting to another jump in oil prices after EU leaders agreed late on Monday to ban 90% of Russian crude by the end of the year, as part of the bloc’s sixth sanctions package against Moscow since its invasion of Ukraine.
Russia vowed to find other importers for its crude shortly after the embargo was announced.
*Here are some key events to watch this week:*
# The Federal Reserve is set to start shrinking its $8.9 trillion balance sheet Wednesday
# The Fed releases its Beige Book report on regional economic conditions Wednesday
# New York Fed President John Williams, St. Louis Fed President James Bullard speak at separate events Wednesday
# OPEC+ virtual meeting Wednesday
# Cleveland Fed President Loretta Mester discusses the economic outlook Thursday
# US May employment report Friday
# The UN’s Food and Agriculture Organization releases its monthly food price index at a time of maximum concern about global supplies on Friday
*Currencies*
# The Bloomberg Dollar Spot Index rose 0.3%
# The euro fell 0.3% to $1.0744
# The British pound fell 0.3% to $1.2620
# The Japanese yen fell 0.8% to 128.62 per dollar
*Bonds*
# The yield on 10-year Treasuries advanced 10 basis points to 2.84%
# Germany’s 10-year yield advanced seven basis points to 1.12%
# Britain’s 10-year yield advanced 11 basis points to 2.10%
*Commodities*
# West Texas Intermediate crude fell 0.2% to $114.87 a barrel
# Gold futures fell 0.7% to $1,844.60 an ounce
By: via @AlliesFin Serve Stock Market
