It was a strange day.
Shanghai is re-opening on Jun 1st.
European countries are in higher inflations again in May.
Russians are talking with Turkey to prepare the grain exports out of Black seaports.
Adding all these factors, the grain market has collapsed, US Dollar Index was up and the US stocks market ended lower today. Let’s look at what happened today.
- Shanghai re-opened finally but not fully. Police removed all fences and police lines so people can walk around the neighbors and do some grocery shopping but not easy to go to the other part of the city. So, is it finally over? No more lockdown? Shanghai people were highly critical of that question. They want to leave to other cities or abroad but practically not possible for now.
- The Chinese government is adding more economic booster shots to their system. One of the newest shots is the decreasing sales tax for cars. They cut the sales tax in the half and expect 2 million more cars would be sold in less than three months but who’s going to buy all those cars with what money? Chinese middle class is in heavy debt with real estate.
- Chinese PMI for May, increased dramatically, and actually, it pulled their stocks market to the upside nicely.
4. EU’s inflation rate hit 8.15 in May, and Germany’s inflation rate was 8.7% in May. Those numbers exceed the expectations and European equity markets were having downed. Germany’s Stock Index was downed by 0.6%.
5. US Dollar and 10-year T-bond yield were gone up today with more worries of higher inflations in coming months but at the same time, the US market has witnessed that Europeans are in worse shape than the US.
6. OPEC+ members will kick the Russians out of the meeting from now on. That was a kind of shocking news of the day. The crude oil market was up about 3% until this news came out then fall hard to…
