European Equities Pare Gains on Inflation Fears
European stocks cut early gains to trade flat to lower on Thursday, after economic data showed German producer prices rose in April by the most in nearly a decade, adding to signs of growing inflationary pressure in Europe’s largest economy. At the same time, the US Federal Reserve minutes suggested policymakers could soon talk about starting to scale back stimulus. Elsewhere, investors welcomed signs of solid economic recovery as EU countries agreed on Wednesday to ease COVID-19 travel restrictions on non-EU visitors, while EU Commission chief Ursula von der Leyen said on Thursday the EU vaccination campaign is catching up with that of the US. The EU has signed a third contract with pharmaceutical companies BioNTech and Pfizer for an additional 1.8 billion doses of the coronavirus vaccine.
Oil Falls for 3rd Session
Oil extended losses for the third session to 3-week lows on Thursday, with WTI crude futures down almost 2% to below $62.5 a barrel on rising coronavirus cases in Asia and prospects of oversupply. Concerns over the coronavirus situation in India lingered, as almost two-thirds of people tested showed exposure to the virus. Meanwhile, the US-Iran nuclear talks reportedly will enter the 5th phase early next week, with the success of it could result in sanctions on Tehran being lifted and more supply coming to the market. Still, the oil market is up almost 30% this year, after recovering to pre-pandemic levels in mid-March on expectations fuel demand would rebound sharply with the rollout of COVID-19 vaccines and the reopening of more economies.
Luxembourg Jobless Rate Steady at 6.1%
The seasonally adjusted unemployment rate in Luxembourg was recorded at 6.1 percent in April, the same as in the previous month, and the lowest since the outbreak of the pandemic last March. The number of unemployed people went down by 71 to 18,130 while the national employment increased by 275 to 280,327. Meantime, the active population went up by 204 to 298,457.
Poland Corporative Wage Growth at Over 12-1/2-Year High
Poland’s corporate sector wages surged by 9.9% percent year-on-year to PLN 5,806 per month in April of 2021, the fastest pace in wage growth recorded since October of 2008, following an 8.0 percent rise in the previous month, but below market expectations by 0.5 percent. On a monthly basis, salaries dropped 2.1 percent, after having increased by 6.5 percent in the month prior.