Anemia's reaction to ESB's comments FinanceAffairs.com

Stock exchanges in both the United States and the United Kingdom were closed today, Monday, as a result of public holidays. In the euro zone, the Euro Stoxx 600 index added a modest 0.2%, in the absence of important economic news, geopolitical events or quarterly reports.

However, investors learned that two representatives of the European Central Bank (ESB) hinted that the first rate cut may already come in connection with the interest rate meeting on June 6. The two noted that annual inflation is close to the 2 percent target. The ECB is clearly less concerned about a rebound in consumer price growth than the Fed, which is not expected to cut its key interest rate before September 18.

Ironically, the eurozone's annual inflation rate in April was exactly the same as it was five months earlier, and the monthly rate of 0.6% was not encouraging at all. Core inflation also does not give any clear signal that interest rates need to be cut immediately. In April, this measure, which excludes food and energy, was also 0.6% – meaning it had risen only in two of the past 12 months.

One possibility is that the European Central Bank believes that the economic recovery in the eurozone is at its slowest. The latest Ifo poll, published on Monday, revealed a disappointingly bad mood in the German business community. In May, the Ifo index reached 89.3, the same level as in April, while economists expected it to rise to 90.4. Once again, the numbers paint a picture of a scenario characterized by stubborn inflation and anemic economic growth. In fact, Ifo respondents claimed that current conditions have become worse, not better, since late April.

Otherwise, the metals market is back at full speed again, following last week's sharp decline. At 4 a.m., gold and silver prices rose by 1 and 4 percent, respectively, while copper became almost 2 percent more expensive. Last year, the increase reached 13, 29 and 33 percent.