Market News #2 - 3 things you need to know this week: tourism, sustainability and the ECB

Welcome to the second edition of Market News, where we go through all the stock market news for the week ahead, in three minutes flat. Here’s what you need to know between June 7th to 11th.

The European Union is preparing to reopen some borders this week. We’ll explore the potential impact on the markets, and highlight some companies that could benefit. We’ll also take a closer look at a US sustainability stock and the next ECB meeting.

Sector to watch: tourism
The European Commission has asked all 27 countries of the EU to welcome vaccinated tourists from all over the world this summer.

Spain will be among the first to follow the recommendations and open its borders to all vaccinated tourists from Monday, June 7th. France will follow with a list of authorised foreign tourists from Wednesday, June 9th. In particular, France is expected to open to Americans with a valid health pass. Greece, Portugal, Cyprus, and Italy will also welcome non-European tourists.

This could be an economic boom for businesses in the tourism sector, especially airlines serving Europe. Keep your eye on Lufthansa, Air France KLM, Delta, and United. Investors will also be watching travel sites like TripAdvisor and Booking. You can find all the tourism stocks on BUX Zero by searching the category.

Stock to watch: United Natural Foods

United Natural Foods is an American food supplier. It specialises in organic products and is best known for supplying the Whole Foods chain. The company will publish its quarterly figures on Tuesday, June 8th. The stock has risen more than 20% thanks to the strong demand for organic food during the pandemic. Good for the body and soul! Analysts are expecting 29% year-on-year earnings growth this time around.

United Natural Foods recently committed to achieving ambitious goals in global sustainability, waste reduction, and climate action by 2030. You can read more about environmental, social, and governance (ESG) factors in our article about sustainable investing, published as part of our monthly campaign in light of World Environment Day.

The Central Bank tackles inflation
See you in Frankfurt on Thursday 10th June for another ECB meeting!

The central bankers will have one big issue on their agenda: inflation. Germany is expected to announce an inflation rate of +2.5% in the last year, moving away from the ECB’s targets. The inflation rate has also risen in other countries, Spain for example.

One member of the ECB said the inflation problem is only temporary. However, the ECB will probably discuss what they can do to keep inflation under control, such as the pace of their bond purchasing program.

To learn more about the impact of inflation on the economy (and your wallet!), check out our article on it.

Economic calendar and earnings

Monday – Inflation rate in the Netherlands. Quarterly figures from Argan.

Tuesday – Trade balance in France and the United States. Final GDP and Zew index in the eurozone. Inflation rate in China. Quarterly figures from United Natural Foods.

Wednesday – Trade balance in Germany.

Thursday – Industrial production in France, Italy, and Belgium. ECB meeting. Inflation rate and unemployment rate in the United States. Quarterly figures from Chewy.

Friday – Trade balance in Great Britain. Inflation rate in France.

Educational video content
For our Dutch and German Community Forum members we’ll have a brand new BUX Broadcast and BUX Börsenausblick. Please check it out below:

BUX Broadcast (Dutch)

BUX Börsenausblick (German)

Interesting articles to read:

Tourism :flight_departure: - Vaccinated Europeans Book Holidays While Brits Decry U-Turn

United Natural Foods :doughnut: - Things to Note Before United Natural’s (UNFI) Q3 Earnings

Germany inflation :de: - German Inflation Climbs to Highest Since 2018 as Lockdown Eases

Are you going on a summer holiday this year?

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We’ll be back next week with another Market News. In the meantime, enjoy your week on the markets! :wave:t4: