European stocks are falling; commodities fall
18 June 2021
European shares were relatively flat on Friday morning as global markets watched commodity prices fall as it continued to digest the U.S. Federal Reserve's hawkish stance.
The pan-European Stoxx 600 index fell 0.2 percent in early trading, with shares of insurance and banking companies falling 1.1 percent, leading losses, while industrial companies added 0.3 percent.
Asia-Pacific shares were also mixed on Friday as investors watched the commodity market move after a recent price fall caused by a strengthening US dollar.
International futures for Brent crude oil fell 0.73% to $72.55 per barrel, adding to Thursday's losses. U.S. crude futures fell 0.55% to $70.65 per barrel.
In the U.S., U.S. stocks rose slightly in early premarket trading on Friday, but the Dow is still on track for a losing week dominated by the Fed's rising inflation expectations and the postponement of the rate hike schedule. This led to a sharp rise in the dollar.
In May, UK retail sales fell 1.4 percent month-on-month, official statistics said on Friday, falling short of the 1.6 percent growth expected by economists in a Reuters poll. The Office for National Statistics said food stores were the biggest contributors to the unexpected decline. The pound fell to a new six-week low on the background of a fall.
Meanwhile, the German Producer Price Index (PPI) rose by 1.5% month-on-month in May, well above the consensus forecast of 0.7%. Year-on-year, PPI was 7.2% against the forecast of 6.4%.
As for the individual share price movement, British car dealer Inchcape climbed 4% in early trading to head the Stoxx 600 after raising its profit forecast for 2021. At the bottom of the index, Dutch life insurer Aegon fell 3.7%.
