The situation in the rest of the Old Continent looked somewhat better, with several indices shining green. Among them were the German DAX (+0.62%) and the Spanish IBEX (+1.01%). A key point of the day was the release of domestic macroeconomic data. In May, wage growth rebounded to 5.8% YoY from 5.4% YoY in April.
However, it should be noted that this was again a reading below expectations, which had pointed to a return of wage growth to 6% YoY. For the RPP this is a favorable set of data – the labour market signals a slight cooling, and therefore is not vulnerable to the latest wave of inflation driven by the shock in the energy commodities market.
Additionally, the Polish consumer’s condition was somewhat weaker than expected – in May retail sales grew real 3% YoY (consensus: 3.7% YoY). Our baseline scenario still assumes that this year the RPP will not decide to raise interest rates.
In our view, there are increasingly more indications that the next move will be a cut, although this will have to wait at least until the first half of 2027.
Across the ocean, the first session of the week also did not bring major emotions. After initial gains, the initiative gradually began to be taken over by sellers.
In consequence, the S&P 500 index closed down 0.37%, while the Nasdaq fell 0.19%.
Nasdaq loses: SpaceX (-16.43%), Alphabet (-4.99%)
Among American blue chips, the biggest drag was SpaceX (-16.43%) and Alphabet (-4.99%).
In the first case, the decline is hard to separate from the valuation, which after the debut we consider "cosmic". In the second, the cause of the discount was the news of the departure of a key expert from Google DeepMind – Nobel laureate John Jumper, who decided to move to Anthropic.
This thread fits into the next chapter of the AI revolution, in which the biggest players also compete for acquiring the best specialists. Meanwhile, from Switzerland came fairly optimistic news on Monday about peace negotiations along the USA–Iran line.
Vice President J.D. Vance declared that the talks have created solid foundations for achieving a final agreement to be reached within 60 days.
It is also worth mentioning that the U.S. Treasury Department announced a suspension of sanctions on the extraction, sale, and transport of Iranian oil during peace negotiations. This set of information helped bring Brent crude prices below $80 per barrel on Monday.
Asian market also loses
At the time of writing, Asian markets are dominated by declines. The Korean KOSPI is losing most strongly, falling over 6%. Voices increasingly point to overheating in the semiconductor sector.
Hence, after a series of record highs, the correction has mainly affected Samsung and SK Hynix shares. For both companies, the upcoming quarterly report from Micron tomorrow will likely be a very important moment that could significantly influence sentiment across the sector.
