【Market Commentary】 The Western stock markets are mixed, and the five-year breakeven inflation rate has risen to 2.47%.
Contributed on Wednesday, June 9, 2021⇒ This article expires at 13:00 on June 11.
■ The biggest concern in financial markets is inflation in Europe and the U.S., with G7 tax reforms also in focus
■ The biggest concern in the cryptocurrency industry is regulation in the U.S. and China; Bitcoin as legal tender is also in focus
Continuing from yesterday, stock markets in the U.S. and Europe were mixed. In the high-price range, volatility has fallen, and price movements are extremely subdued, which is typical of a rising market. The VIX index, derived from S&P 500 options to measure stock price fluctuations, is at 17.07, below the psychological threshold of 20.
The Russell 2000, an index of U.S. small and midsize businesses, rose by 1.06% from the previous day. The DAX in Germany, which is near a peak, fell 0.23% from the previous day for a second consecutive day of pullback, but remains in a bullish market (see image).
[Source] Trading View DAX daily chart
NY crude oil initially broke on Monday but remains in an uptrend with a gain of 1.3% from the previous day. The U.S. 10-year Treasury yield fell further to 1.53%, while gold failed to hold the $1,900 level and dropped to the $1,890s. Natural gas remained firm. The currency market had nothing notable. The U.S. April trade deficit narrowed from the March record gap of $75 billion to $68.9 billion.
The cryptocurrency market appears to be flat on a 24-hour basis, but around midnight Japan time there was a soft stance up to that time, followed by a rebound. Price levels range from the $31,000s to the $33,000s.
This week, many countries are focusing on this week's CPI release. Here is the BEI (Breakeven Inflation Rate) that the five-year market expects.
5-Year Breakeven Inflation Rate (T5YIE)
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