The macro of the week :

The job market has not fully recovered from the pandemic we are all experiencing. But note that for the month of June alone, no less than 850,000 jobs were created for 680,000 announced by a consensus of analysts.

Even if 6.8 million jobs are missing to find a similarity with the figures for February 2020, the latter are up sharply compared to last May, which recorded 559,000 job creations.

In addition, an acceleration in job search should be felt in the autumn with the expiry of unemployment benefits.

An update on inflation :

In Europe, the month of June shows that the annual inflation rate fell to 1.9%, from 2% for the previous month. It should be noted that inflation in Europe, and even in Japan, is slowing down while it continues to rise on the side of the United States.

This difference is mainly due to the fact that we have the same pressures on prices that result from raw materials, but which however, is in no way applied with regard to wages and therefore has a direct impact on the service sector.

Let us now come to the disagreements that are playing out around oil :

Consumer countries want to revise production plans upwards and pump more crude oil until the end of this year to prevent high prices from undermining the global recovery. The OPEC thus accepted, this Friday July 2, 2021 to increase the production of approximately 2 million barrels per day, and this, for the period from August to December 2021. However, the United Arab Emirates blocked this agreement , prolonging discussions until unanimous agreement is reached.

If we now look at the market :

Note that the American indices have returned to their all-time high.

With the onset of summer, market liquidity deteriorates while at the same time volatility is excessively low. If the time has come to consider reallocating to an attractive and attractive asset class, one might think of convertible bonds.

Reasons to be interested:

In view of a potentially turbulent summer, the investment profile offered by convertible bonds is particularly attractive. In short, the latter benefit both from the rise in equity markets and the fall in bond volatility.

There are many movements that create uncertainty. Whether it is a financial crisis, a political rebound, or even the ongoing health crisis, bond markets are showing much less volatility, however. While often less familiar with this asset class, it can meet many expectations.

Wealth A7, always by your side to bring your desires to life.