European stocks failed to extend gains in the last trading day of May, weighed down by German inflation data that exceeded expectations, but continued to accumulate gains throughout the month, thanks to optimism about the economic recovery fueled by relaxed vaccination and vaccination restrictions. The offshore yuan continued to set new three-year highs along with a weaker dollar.
Pan-European stock indices ended a two-day streak of gains, falling from record highs set for two consecutive days through Friday. The Euro Stoxx 600 index closed down 0.49% on Monday at 446.76 points, after a cumulative gain of 2.14% in May, up four months in a row and up more than the 1.81% in April, which was the lowest gain in four months.
Stoke 600 sectors, Monday only rose more than 0.3% of travel and leisure and a slight increase in the two sectors of automotive and parts did not fall. In May, only down about 4% of travel and leisure, down more than 0.2% of insurance and a slight decline of more than 0.1% of the three sectors of science and technology accumulated losses, accumulated gains In the sector, retail up about 6% led, followed by more than 5% of personal and household goods and both up nearly 5% of the banks and automotive and parts.
Among individual stocks, Germany’s largest bank Deutsche Bank fell 1.3%, becoming the main pusher of the broader German and European stocks. Media sources said on Sunday that the Federal Reserve recently notified the bank that it had failed to improve on ongoing weaknesses in anti-money laundering controls and that the bank could be fined as a result. Italy’s largest insurer Assicurazioni Generali made a $1.44 billion takeover offer to domestic peer Società Cattolica di Assicurazione, whose shares jumped 15%, while the former fell nearly 0.2%.
In addition to Italian stock indexes, major European stock indexes fell on Monday, just ended a two-day losing streak of German and Western stocks retreated, German stocks fell from the closing record highs set on Friday, Italian and French stocks ended a two-day and three-day streak, respectively.
Germany’s DAX 30 index closed down 0.64% at 15,421.13 points; cumulative gain of 1.88% in May. France’s CAC 40 index closed down 0.57% at 6447.17 points; May cumulative gain of 2.83%. Italy’s FTSE MIB index closed basically flat at 25,170.55 points; May cumulative gain of 4.27%. Spain’s IBEX 35 index closed down 0.82% at 9148.90 points, up 3.79% in May.
All national stock indexes rose in May, French and German stocks rose for five months in a row, Western stocks rose for four months in a row, Italian stocks erased the April decline. As of Friday’s close, the FTSE 100 index, which is closed on Monday, rose 0.75% in May, although up five months in a row, but the bottom of the rise in national stock indexes.
Among other assets, the U.S. dollar index (DXY) this Monday in the European shares fell below the 90.00 mark at midday to turn down, refreshing the daily low when the day fell more than 0.2%. Supported by a weaker dollar, the August Brent crude oil futures contract, which closed early on Monday, closed up 0.87% at $69.32 per barrel, continuing to set a new high since March 11.
At 4:59 p.m. Beijing time on June 1, the offshore Chinese yuan (CNH) was trading at 6.3728 yuan against the U.S. dollar, down 125 points from late Friday’s New York session, with overall intraday trading in the 6.3525-6.3746 yuan range, with European shares once setting a new intraday high for the third consecutive session since May 23, 2018, and a new intraday high since the 25th of the same month last Wednesday.
Bitcoin (BTC) had fallen below $34,200 to refresh the daily low during the Asian session and before the European stock market, and European shares were refreshing the daily high above $37,000 towards the end of the session, up more than $3,000 from the intraday low. Market capitalization second only to bitcoin’s ethereum (ETH) European shares had fallen below $ 2,280 before the day to refresh the daily low, since then a road up, European shares rose above $ 2,680 during the day, compared with the intraday low rose nearly 18%.
CoinMarketCap data show that cryptocurrencies rose across the board on Monday, European shares after hours, the sixth largest cryptocurrency Ripple (XRP) rose more than 10% in the last 24 hours up, Bitcoin remained above $36,000, up nearly 2% in 24 hours, Ether is above $2600, up more than 6% in 24 hours.
German CPI inflation unexpectedly grew at the fastest pace in nearly two-and-a-half years Chinese manufacturing price indexes were significantly higher
Recent dovish speeches by ECB officials last week helped support higher European stocks and lower European bond yields, especially after central bank President Lagarde said it was too early to discuss slowing the pace of the emergency bond purchase program, PEPP, during the epidemic.
And Germany’s preliminary CPI growth for May, released on Monday, was 2.4% year-on-year, the fastest rate of growth since November 2018, above market expectations of 2.3% growth and 2% growth in April, and above the European Central Bank’s inflation target level of 2%. Carsten Brzeski, global head of macro at Dutch financial giant ING, believes the situation will become increasingly complicated as headline inflation climbs and the ECB manages to avoid tapering QE rhetoric. Inflation in Germany could end up at 3%-4% in the second half of the year.
Some commentators believe that European stocks are also affected by economic data from China and Japan.
China’s official manufacturing PMI for May released earlier on Monday was flat in April, while the price index was at a high point in recent years, with the purchase price index for major raw materials and the ex-factory price index at 72.8% and 60.6%, respectively, 5.9 and 3.3 percentage points higher than in April. By industry, the two price indices for the upstream industries of petroleum, coal and other fuel processing, ferrous metal smelting and rolling processing, non-ferrous metal smelting and rolling processing were higher than 73.0%, with the ex-factory price index for ferrous metal smelting and rolling processing industry higher than 80.0% for three consecutive months.
The growth rate of retail sales in Japan, which was announced earlier than the Chinese PMI, was weaker than expected, and industrial output exceeded the level before the outbreak for the first time, but the growth rate was also less than expected: retail sales grew 12% year-on-year in April, lower than the market’s expected growth rate of 15.6%, and fell 4.5% in April from a year earlier, down more than the market’s expectation of 1.2%; industrial output grew 15.4% year-on-year in April, compared with the market’s expectation of a growth of 17.2%, and the April chain of events was higher than expected. 17.2% in April and 2.5% in April from a year earlier, the market expects an increase of 4%.