Supply strains mount

Today's news headlines: 

‘Covid outbreak at Chinese port exacerbates global supply chain delays’. Disruption at one of the largest shipping terminals in the south of China is placing more stress on an already damaged supply chain. Coronavirus infections located in these factories has caused shutdowns which lasted weeks in May. The cost of sending a 40ft shipping container has since soared to over $11,000 from $8,500 at the start of May and just $2,000 eight months ago. The delays and associated costs are expected to remain for at least the rest of 2021. (Financial Times)

‘Eurozone economy edges back towards pre-pandemic norms’. Pre-pandemic economic patterns are beginning to re-emerge in the Eurozone. People are flooding back to restaurants and travelling to work, which has helped boost the use of public transport with commuting hitting its highest level since early last year in many EU countries. The travel sector continues to lag, with many parts of the industry still shut down; however, domestic retreats seem to be on the rise, with levels surpassing those in 2019. (Financial Times)

Today's events, rates, and data 

  • Markets managed some marginal gains yesterday, with the S&P 500 finishing the day 1.40% higher, while across the pond, the FTSE 100 gained 0.64%. In addition, Cable recovered some of the selling pressure it faced last week, rising to around the $1.39 level yesterday.

Today's events

New Zealand Credit Card Spending y/y: 27.2% vs 87.5% last month
Japan BOJ Core CPI y/y: 0.0% vs -0.1%
UK Public Sector Net Borrowing: 23.6B vs 28.3B last month
UK CBI Industrial Order Expectations: 11:00AM
Eurozone Consumer Confidence: 3:00PM
FOMC Member Mary Daly Speaks: 4:00PM
Federal Reserve Chairman Jerome Powell: 7:00PM

Interbank rates

GBP/USD – 1.3899
EUR/USD – 1.1897
GBPEUR – 1.1682
USDCAD – 1.2381

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