Key Rate and CPI , %
In May, inflation in the US and UK slowed to 3.3% and 2.0%, respectively. Despite this, the US Fed and the Bank of England kept key rates unchanged. Meanwhile, the ECB cut its key rate by 25 basis points to 4.25% for the first time since 2019, although Eurozone inflation rose from 2.4% in April to 2.6% in May 2024.
The central banks of China, Indonesia and Mexico adhered to the previously outlined policy, while the Central Bank of Brazil lowered the key rate by 25 basis points to 10.5%. At the same time, CPI showed growth in all the above-mentioned countries, except China.
Industrial production in developed countries 2 years, YoY, %
The US unemployment rate increased by 10 basis points for the second consecutive month and reached 4.0% for the first time since January 2022. The labour force participation rate fell from 62.7% to 62.5%, indicating a slight decline in the share of Americans working or looking for work.
Yield curves for May 2024, 2023, and 2022 years
The US Treasury yield declined in May. There was also a steady inversion of the yield curve. On May 29, the US Treasury launched a buyback program to provide market participants with a regular opportunity to sell Treasury securities that are out of circulation, older and less liquid. Under the program, the plan is to buy back up to $2B weekly through July 24.
The dollar index (DXY) fell to 104.62 by the end of May from 105.69 at the end of April. One of the basket currencies, the yen, fell to a 34-year low of 160.03 against the US dollar, with the Japanese Ministry of Finance intervening with $62.25B.
The stock market has grown. During May, the S&P 500 index rose by 4.80%,
the NASDAQ Composite by 6.88%, and the Dow Jones Industrial Average by 2.30%.
Dynamics of key stock indices, YTD
The price of WTI crude oil fell by 5.1% in May and Brent by 5.31%, resulting in growth of 8.0% and 5.69%, respectively, since the beginning of the year. Prices could have been affected by concerns about the Fed's unwillingness to cut the key rate in the near future and the growth of crude oil inventories in the United States.
Dynamics of energy commodities prices, YTD
IPO dynamics in the USA, 2016 – 2024
M&A dynamics in the USA, 2016 – 2024
The list of unicorns was expanded to include 5 new non-public technology companies valued at more than $1 billion.
Dynamics of Bitcoin and Ethereum prices, YTD
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