May snapshot

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June 11, 2021

BNY Mellon is committed to delivering cost-effective, quality solutions to help investors achieve their financial goals. Whether you’re new to investing or you’re a seasoned investor, exchange-traded funds (ETFs) can be a simple, cost-effective approach for broad market participation. Here we consider some of the major trends making headlines today.

1S&P Global: S&P 500. Accessed June 4, 2021. 2Economics and Investment Analysis (GEIA) monthly market roundup: June 2021. 3S&P Global: US Equities Market Attributes May 2021. June 1, 2021. 4GEIA monthly market roundup: June 2021. 5GEIA monthly market roundup: June 2021. 6NBC: US economy added 559,000 jobs in May, vs. estimated for 675,000. June 4, 2021. 7GEIA monthly market roundup. May 2021. 8GEIA monthly market roundup. June 2021. 9Focus Economics: Indonesia – Inflation comes in at highest since December 2020. June 2, 2021. 10GEIA monthly market roundup: June 2021. 11Reuters: Eurozone inflation jumps past ECB target. June 1, 2021. 12GEIA monthly market roundup: June 2021. 13GEIA monthly market roundup: June 2021. 14Bloomberg Gold slips from four-month high as treasury yields rebound. May 6, 2021. 15World Bank: Commodities Price Data: April 2, 2021. 16GEIA monthly market roundup: June 2021.

Past performance is no guarantee of future results.

Market Makers

“US banks and energy beat the overall S&P YTD on the reopening theme. This was expected as cyclical sectors like financials, materials and energy are expected to be the most correlated to the economic recovery.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

Going for Growth

“The labor market recovery has lagged to date and firms are struggling to find workers. And while the number of US jobs added in May doubled from the prior month, it still came in below expectations.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

Inflation Intelligence

 

 

Currencies and Commodities

“The Yuan has hit a five-year high against major currencies due to rising capital inflows and US Dollar weakness. It will likely follow its upward trajectory if these conditions continue.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

DEFINITIONS

Consumer Price Index: Index measures changes in the price level of market basket of consumer goods and services purchased by households.

FX: Refers to the global electronic marketplace for trading international currencies and currency derivatives.

MSCI EM: The MSCI EM index tracks the performance of Emerging Market Equities.

PMI: An economic indicator derived from monthly surveys of private sector companies. A level above 50 indicates expansion compared to the prior month and below 50 contraction.

Renminbi: The official currency of the People’ Republic of China.

S&P 500: A stock market index that measures stock performance of 500 large companies listed on the stock exchanges in the United States.

Spot prices: The current price in the marketplace at which a given asset can be bought or sold in the marketplace.

USD: The US Majors Dollar Index tracks the performance of the USD versus a basket of foreign currencies including the euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona, and Swiss Franc.

WTI Crude: Generic West Texas Intermediate crude oil spot price.

ETFs trade like stocks, are subject to investment risk, including possible loss of principal. The risks of investing in the ETF typically reflect the risks associated with the types of instruments in which the ETF invests. Diversification cannot assure a profit or protect against loss.

ETF shares are listed on an exchange, and shares are generally purchased and sold in the secondary market at market price. At times, the market price may be at a premium or discount to the ETF’s per share NAV. In addition, ETFs are subject to the risk that an active trading market for an ETF’s shares may not develop or be maintained. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions.

Bonds are subject to interest rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. High yield bonds involve increased credit and liquidity risk than higher rated bonds and are considered speculative in terms of the issuer’s ability to pay interest and repay principal on a timely basis. Equities are subject to market, market sector, market liquidity, issuer, and investment style risks to varying degrees. Small and midsized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and have more volatile earnings histories. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.

Currencies can decline in value relative to a local currency, or, in the case of hedged positions, the local currency will decline relative to the currency being hedged. These risks may increase fund volatility. Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be appropriate for all investors.

Past performance is no guarantee of future results.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Please consult a legal, tax or financial professional in order to determine whether an investment product or service is appropriate for a particular situation.

Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. The information in this presentation is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.

BNY Mellon Investment Management is one of the world’s leading investment management organizations, encompassing BNY Mellon’s affiliated investment management firms, and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. BNY Mellon ETF Investment Adviser, LLC is the investment adviser and BNY Mellon Securities Corporation is the distributor of the BNY Mellon ETF funds, both are subsidiaries of BNY Mellon.

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