European markets slip following inflation data; Deutsche Bank slips 1.3%
Europe's major indexes were slightly weaker on Monday, as investors digested inflation data from some of the region's biggest economies on a quiet day due to holidays in the U.K. and U.S.
Germany's DAX was trading 0.25% lower at 15,482 at around 3 p.m. local time, after hitting an all-time high the previous week. France's CAC was largely flat, trading at 6,481 at the same time in Paris.
Switzerland's SMI was also around the flatline. Meanwhile, Italy's FTSE MIB, was up 0.4% at 25,266. It is a bank holiday in the U.K. with the FTSE 100 closed.
The German index was weighed down by Deutsche Bank, whose share price fell as much as 2% after reports that the U.S. Federal Reserve said it was concerned about the German lender's anti-money laundering practices. By 3 p.m. local time it had pared some losses to trade 1.3% lower
Also on Monday, inflation data was published for countries including Spain, which saw its highest inflation reading in four years. Consumer prices rose 2.4% in May year-on-year according to flash data from the country's National Statistics Institute.
In Germany, inflation rose 2.5% on the year in May, confirming that inflation has arrived on the continent.
Meanwhile, France on Monday begins Covid-19 vaccinations for everyone over the age of 18.
Despite starting the day mostly in the green, European markets were lacking direction by mid-afternoon after a pullback in some Asian markets as China reported a manufacturing growth slowdown due to higher commodity prices.
Meanwhile, U.S. markets are closed for Memorial Day weekend.
OECD ups forecasts
The OECD's latest Economic Outlook, published Monday, brought some good news for the euro area. Its report, entitled "No Ordinary Recovery," said the global economic outlook is brightening, but in a very uneven way. For the global outlook overall, the organization sees a 5.8% growth in gross domestic product (GDP) in 2021, compared to a 3.5% contraction in 2020. It forecasts a 6.3% growth for the G20 group of developed economies, and 4.3% for the Euro area.
It added, however, that despite encouraging signs in health and economic recovery, there remain some significant headwinds, namely not enough vaccines for developing countries.
It comes amid hopes that U.S. job figures show a comeback in hiring for May, demonstrating continued global recovery.
In other news, OECD Secretary-General Angel Gurria's term of office ends Monday and NATO chief Jens Stoltenberg is scheduled to brief press ahead of a Foreign and Defense Ministers meeting.
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