Daily Market Commentary Flash Note May 31, 2021

Currencies	The rand has largely maintained its recent gains despite demand for USD.
Commodities	Gold is back above $1,900 per ounce while Brent crude oil has moved back above $69 per barrel.
Equities	Chinese macro data shows that the world’s post-pandemic recovery is on track albeit at a slower pace than equity investors would have hoped for, so stocks are losing momentum into month-end.
Economics	Economic confidence in the Eurozone improved; In the US, the PCE deflator increased to 3.6% y/y while sentiment dropped; The SA monthly budget deficit widens in April.

Date	Region	Event	Actual/Expected/Prior	Implications
05/28	US	University of Michigan Sentiment	82.9/83/82.8	Confidence in both future and current economic conditions declined in May.
05/28	US	PCE Deflator	3.6%/3.5%/2.4%	Increased to 3.6% y/y and by 0.7% m/m in April.
05/28	EZ	Economic Confidence	114.5/112.3/110.5	Increased confidence levels mainly driven by improved optimism in services.
05/31	SA	Trade Balance	–/37.5b/52.8b	The trade surplus is expected to ease in April given typical reductions in trade activity associated with public holidays during the month; this effect should be offset by the impact of higher commodity prices and increased demand.
06/01	SA	Unemployment	–/33.4%/32.5%	Unemployment expected to increase to 33.4%.
06/01	SA	Absa Manufacturing PMI	–/55.5/56.2	PMI expected to drop to 55.5 points in May.