European indices rose, investors are waiting for data on inflation in the US

Stock indices of Western Europe mostly rose on the basis of trading on Monday, despite concerns about accelerating inflation.

The composite index of the largest enterprises in the region Stoxx Europe 600 climbed 0.22% to 453.56 points.

The British FTSE 100 indicator added 0.12%, the French CAC 40 – 0.43%, the Italian FTSE MIB – 0.99%, the Spanish IBEX 35 – 0.83%. Germany’s DAX fell 0.1%, Trend reports citing Interfax.

The focus of investors this week is on data on changes in consumer prices in the US in May. A month earlier, annual inflation in the United States was at its highest since 2008, 4.2%. If prices continue to rise, the US Federal Reserve System (FRS) may be forced to start rolling back stimulus measures, writes CNBC. May data on changes in consumer prices in the United States will be published on Thursday.

US Treasury Secretary Jannette Yellen said that US President Joe Biden should seek to implement his proposed programs to support the economy totaling $ 4 trillion, even if this would increase inflationary pressures and raise interest rates in the country.

“If interest rates rise slightly, it will be a plus both from the point of view of society and from the point of view of the Federal Reserve,” she said in an interview with Bloomberg.

Meanwhile, the leading industrialized states of the G7 have reached an agreement to set a minimum income tax rate of at least 15%.

The G7 finance ministers, following their meeting over the weekend, also agreed on the right of countries to tax the activities of transnational companies in the part that falls on a given country.

Traders on Monday also assessed stats from China and Germany. Growth in Chinese exports in May slowed to 27.9% in annual terms from 32.2% a month earlier. Imports jumped 51.1% in May, at the fastest pace since January 2011.

Meanwhile, German industrial orders in April fell 0.2% from the previous month, the country’s economic ministry said. Analysts on average were forecasting a 1% rise, according to data from Trading Economics. According to the revised data, in March the figure rose by 3.9%, and not by 3%, as previously reported.

A meeting of the European Central Bank (ECB) is also expected this week, the results of which will be announced on Thursday.

Among the components of the Stoxx Europe 600 index, the shares of the Swiss chemical company Lonza Group AG rose most significantly, adding about 4% in price.

The price of shares of the British Reckitt Benckiser Group Plc fell by 0.7%. The company is selling a majority stake in its Chinese baby food business (IFCN China) to investment Primavera Capital Group for $ 1.3 billion.

The leaders of the fall were the shares of the British IWG Plc, which fell in price by 10.3%. The office rental company expects its adjusted EBITDA to be significantly lower this year than last year due to the continued impact of the pandemic on its business.




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