Bank of America CEO Brian Moynihan thinks that the United States is starting to win the war against coronavirus. In addition, he believes that the economy is reaching pre-pandemic levels.
The economy contracted considerably during the pandemic, declining by about 3.5%. Remarkably, more than 400,000 small businesses closed, and some Americans had to rely on stimulus checks to make some purchases.
Moynihan announced that vaccination efforts and reopening businesses has provoked a strong response from the economy.
Fed’s Quarles thinks a recent rise in inflation will be transitory
Remarkably, a critical view into inflation comes with the May U.S. consumer price index.
It is shaping up as one of the most-watched numbers for some time after consumer prices increased by the most in almost 12 years in April. Meanwhile, debate rages over whether a pick-up in price pressures is temporary or more sustained.
The Fed’s Randal Quarles considers a recent rise in inflation will prove transitory. Another strong inflation print that raises Treasury yields could pressure valuations on tech and other growth stocks.
China’s imports boosted at their fastest pace in 10 years
Trade data from around the Pacific should reveal goods going west from Japan, China, and South Korea and money flowing east from North America. Additionally, updates from the United States, Germany, and Britain are on the calendar.
Data on Monday revealed China’s imports rose at their fastest pace in 10 years in May. Notably, it was fuelled by increasing demand for raw materials, although export growth slowed more than anticipated.
Another essential thing to mention is that China recorded a $45.53 billion trade surplus for the month. Notably, that’s larger than the $42.86 billion surplus in April, which could help renew upward pressure on the yuan.
The currency hit a three-year peak against the dollar in May.
Meanwhile, Chinese producer price data on Wednesday will revea how much inflation is exported as factories begin to pass on higher raw material costs to customers.