Investors focus on inflation data in Europe and FOMC minutes

Pfizer and BioNTech SE submitted an application to US regulators to approve a third booster dose of the vaccine, which has higher levels of neutralizing antibodies against the original virus and against Beta and Delta variants. Pharma companies are confident that revaccination within a year after the second vaccine can help keep protection from COVID-19.

European stock indices traded without a single dynamic. Investors became less optimistic about Europe’s economic growth prospects, despite GDP growth and active vaccination. The UK unemployment rate fell from 4.8% to 4.7%, and the number of employees in British companies approached pre-pandemic levels. Europe and the UK will report on the inflation rate today. This is important data that central banks consider when planning their monetary policy.

Oil demonstrates the decline for the fourth day in a row. The prospect of reducing the demand for travel and new restrictions in Asian countries continue to put pressure on quotes.

Chinese authorities continue to put pressure on the country’s IT sector. Yesterday, the State Administration for Market Regulation (SAMR) presented a new draft of rules aimed at stopping unfair competition on the Internet. In turn, the head of the US Securities and Exchange Commission (SEC) appealed to investors with a warning of risks related to investments in Chinese companies in the US stock exchanges. The trade war between the two countries continues. There is a possible crisis associated with delays of shipping supplies from China ahead. China’s newspaper, People’s Daily, which is considered the mouthpiece of China’s Communist Party, hints at the need to stimulate the economy. If China announces an easing of monetary policy, Asian stock indices could begin a bullish trend. The Reserve Bank of New Zealand announced it would keep its monetary policy unchanged, leaving the interest rate at 0.25%. Analysts had expected that New Zealand would become the first advanced economy to raise interest rates.