Europe’s major indices closed in the red on Monday as investors digested inflation data from some of the region’s largest economies on a quiet day amid UK and US bank holidays
The German DAX temporarily ended the day with a minus of 0.7% and thus fell from an all-time high last week. France’s CAC was also around 0.7% lower at the end of the day. Spain’s IBEX fell 0.9%.
Meanwhile, Italy’s FTSE MIB ended the day largely flat. It’s a public holiday in the UK when the FTSE 100 is closed. The US markets are also closed, this time on Memorial Day weekend.
The German index was dragged by Deutsche Bank, whose share price fell up to 2% after the Federal Reserve reported it was concerned about the German lender’s anti-money laundering practices. By the end of the day it had reduced some losses and closed around 1.3% lower.
It comes after inflation data was released for countries like Spain, which had the highest inflation rate in four years. Consumer prices rose 2.4% year over year in May. This comes from flash data from the country’s National Statistics Institute. In Germany, inflation rose 2.5% yoy in May, which confirms that inflation has arrived on the continent.
Meanwhile, France will start Covid-19 vaccinations for anyone over the age of 18 on Monday.
CNBC Pro Stock Picks and Investment Trends:
OECD increases forecasts
The OECD’s latest economic outlook, released on Monday, brought some good news for the euro area. His report, titled “No Ordinary Recovery,” states that the global economic outlook is brightening, but in very uneven ways. For the global outlook as a whole, the organization predicts gross domestic product (GDP) growth of 5.8% in 2021, compared to a decrease of 3.5% in 2020. It forecasts 6.3% growth for the G20 group Industrialized countries and 4.3% for the euro area.
However, it added that despite encouraging signs of health and economic recovery, there are some significant headwinds, namely not enough vaccines for developing countries.