European equity markets were mixed on Monday, with the London benchmark index climbing despite a UK labor crisis.
UK restaurants are rushing to hire staff as fast as they have been in years as the economy continues to reopen from lockdown on Prime Minister Boris Johnson’s timetable.
Home builders led the gains in London after the Halifax House Price Index found prices rose 9.5% higher in May than the same month last year, while stocks of basic commodities fell.
Continue reading: UK business confidence rises to seven-year high
Investors were wary of how stocks of big tech companies would react to the G7’s agreement on a minimum global corporate tax rate of at least 15 percent, though getting approval from the entire G20 could be a major challenge.
Traders will also look at key inflation data later this week.
Asian stocks fell overnight as a coronavirus outbreak hit chipmakers in Taiwan and Chinese export growth slowed in May.
Taiwan’s stock index ended lower that day as a surge in COVID cases hit three tech companies in the north of the country, including Chippacker King Yuan Electronics (2449.TW).
Continue reading: The shortage of chips is bringing car factories to a standstill
Meanwhile the Hang Seng (^ HSI) fell 0.6% and the Shanghai Composite (000001.SS) up 0.2% as China’s exports slowed last month and grew 27.9% year-over-year, up from 32.3% in April. This was weaker than predicted by economists.
The poor performance was due to the global shortage of chips, rising raw material costs and ailing supply chains.
“So we expect trade and production data to be affected in June,” said ING’s Iris Pang. “This could drive up the prices of electronic goods in general and affect export prices in China and ultimately import prices in the US and Europe. The supply chains in Asia are also likely to be disrupted. “
However, imports rose 51.1% in May, the fastest increase in a decade
Japan’s Nikkei (^ N225) ended up 0.3% after hitting its highest level in almost a month.
Watch: COVID-19: Chip shortage throws the bill as the auto industry struggles