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Weekly financial market overview 21.06.-27.06.

News - June 28, 2021

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Konstantins Goluzins, CFA



Head of Asset Management
Phone.: (+371) 6700 0456
E-mail: trust@bib.eu

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Main events of the previous week

The Bank of England has kept its base interest rate at 0.1% per annum. The asset purchase program maintained at £895 billion. At the meeting ending June 22, 2021, the Bank of England committee ruled that the current monetary policy stance remains adequate and voted unanimously to keep the bank rate at 0.1%. The committee also advocated keeping the volume of purchases of assets financed through the issue of the Central Bank at £20 billion. In addition, the regulator will continue the program of purchasing UK government bonds in the amount of £875 billion. Thus, the overall target for the volume of asset purchases will remain at the level £895 billion.

Economic data

Eurozone. According to the preliminary assessment of the PMI business activity index in June, the indicator increased by 2.1 points and amounted to 59.2. Of the indicators that make up the index, business activity in the service sector was higher by 2.8 points, while the state of the manufacturing sector remained at the previous level.

US. According to the preliminary assessment of the PMI business activity index in June, the indicator decreased by 4.8 points and amounted to 63.9. Of the indicators that make up the index, business activity in the service sector was 5.6 points lower, while the state of the manufacturing sector increased by 0.5 points.

The number of initial jobless claims for the week was registered in the amount of 411 thousand, which is 7 thousand less than the week before and 31 thousand more than predicted by analysts.

The volume of orders for durable goods in May increased by 2.3% versus the previous month. The growth of the base indicator, which does not include civil aviation, was 0.3%.

In May, the level of personal income, as expected, decreased by 2% mom, while the level of personal spending remained unchanged in May, after growing 0.9% in April.

Key events this week

  • On Wednesday, preliminary data on the inflation will be published in the Eurozone for June, while the US will report on changes in oil reserves for the week.
  • On Thursday, the US will publish the number of initial jobless claims for the week.
  • On Friday, the US will publish data on the state of the labor market in June.

The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

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