It was a bullish month for world equity markets, with net monthly gains ranging from +7.6% (Russia), +6.5% (India), +6.0% (Brazil), +4.9% (China), +1.9% (USA, Germany), +1.7% (Hong Kong), +1.6% (Australia), +1.2% (South Africa), to +0.2% (Japan).
Lets take our regular look at ten of the world equity markets.
USA - Dow
The mighty Dow climbed for a fourth consecutive month, breaking a new historic high of 35091, and settling +654pts (1.9%) to 34529. Monthly momentum continued to increase, and is the highest since the late 1970s... perhaps ever.
I would note the key 10MA at 30525. Equity bulls need have no concerns unless a monthly settlement under it, and that looks unlikely until the late summer/autumn.
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Germany – DAX
Japan – Nikkei
Brazil – Bovespa
Russia - RTSI
India – SENSEX
China – Shanghai comp'
South Africa – Dow
Hong Kong – Hang Seng
Australia – AORD
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Summary
All ten world equity markets settled net higher for May
Russia lead the way up, with Japan lagging.
The USA, German, Brazilian, and Australian markets broke new historic highs.
All ten world markets are trading above their respective monthly 10MA, and I thus see the m/t trend in all ten as bullish.
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Looking ahead
The schedule is pretty light. Key aspect of the week will be the CPI.
Earnings:
M - MRVL, SFIX, COUP, MTN
T - MOMO, NAV, CASY
W - LOVE, CPB, GME, RH
T - FCEL, SIG, CHWY,
F -
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Econ-data:
M - Consumer credit
T - Intl' trade, JOLTs
W - Wholesale trade, EIA Pet'
T - CPI, Weekly jobs, US T-budget
F - Consumer sent'.
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| Summer solstice is nearing |
Final note
May was unquestionably just another month for the equity bulls, as world equity markets continued to push upward.
The only real concern in the short/mid term is inflation. Just how might Print Central respond if CPI prints 6, 7, or 8% by late summer? Ohh yeah, they'll deem it 'transitory'. What if CPI keeps on climbing to 9, or 10% by year end? At what level of inflation will the fed 'break'?
For inflation, I would look to lumber, wtic, gasoline, and copper. Or you could just visit your local grocery store. Whilst the market is fine with playing word games with the Fed, the sheep/serfs are not going to be pleased, as food and energy prices broadly climb. Just imagine the possible 'winter of discontent' ahead.
In any case... whilst market conditions in the summer tend to be pretty subdued, we should have some 'entertaining times', not least via the meme/WSB stocks.
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Have a good weekend
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