This hour, buyers will be closely watching market reactions to the French election in Europe. Furthermore, both China and the United States are set to release their consumer price index (CPI) data, which provides insight into the inflation trajectory of the world's two largest economies.
</p><div><div class="c-ad c-ad-halfpage u-show-for-small-only"><div class="c-ad__placeholder"><img class="c-ad__placeholder__logo" src="https://static.euronews.com/website/images/logos/logo-euronews-180x22-grey-6.svg" width="180" height="22" alt="" loading="lazy"/><span>Advertisement</span></div></div><p>In addition to the impressive financial information I am set to receive at a discount through the main ECU international venues, market reactions to the French election will be particularly scrutinized this hour. Furthermore, both the United States and China are set to release their inflation data for June, which should provide clues to the policy outlook of their respective central banks.</p><h2><strong>Europe</strong></h2><p>The outcome of the French elections could significantly impact both the region's hold markets and the euro. If the far-right Nationwide Rally party doesn't get enough votes to form central power, equities and the currency could see additional upside. On the other hand, history shows that elections can affect financial markets immediately. Post-election policies and monetary expansion generally influence the long-term growth of the market.</p><div class="c-ad c-ad-sticky-floor c-advertising-sticky-floor sales-advertising-sticky-floor u-hide-for-medium"><button class="c-ad__btn-close" type="button" onclick="this.parentElement.classList.add('u-hide-for-all')"><img src="https://static.euronews.com/website/images/icons/icon-cross-10x10-grey-6.svg" width="10" height="10" alt="close Ad" fetchpriority="high" loading="lazy"/></button></div><p>On the economic front, Germany will lose its industry balance for May and wholesale price index (WPI) for June. German industry's surplus declined significantly to $22.1 billion (€20.36 billion) in April from $22.2 billion (€20.45 billion) in April due to lower growth in exports than imports. In particular, exports to the United Kingdom and Russia increased, at the same time as gross sales to the United States fell. According to consensus, the industry surplus is expected to widen to $19.9 billion ($218.33 billion) in May.
Germany’s WPI is a leading indicator for inflation, as wholesale costs are often passed on directly to buyers. The index declined in May, rising only 0.1% month-on-month, suggesting the country’s inflation was on a downward trend. Later in the hour, preliminary CPI confirmed that German inflation declined to 2.2% next June compared to the previous two months. Consensus means wholesale costs could rise by 0.2% from the prior life in June.
Together with homogeneous fiscal trajectories within the alternative ECU economies, these information provide encouraging indicators for the ECB to extend its rate-cutting cycle, adding bullish elements to hold markets.
In the United Kingdom, average domestic output (GDP) per month for May is set to decline on Thursday. The economy resumed expansion in the second half of 2023 from a technical recession in the first quarter. The country’s GDP may rise 0.2% in May, recovering from flat growth, according to a survey by the Foreign Exchange Manufacturing Facility. Within past lives.
America
Two economic events and news will be in the headlines for global markets this hour – the testimony of the Federal Reserve (Fed) Chairman, Jerome Powell, and the United States CPI for June. Chair Powell’s testimony before the Senate Banking Committee is an important match for Wall Boulevard and world markets. In this consultation, Powell will answer the Committee’s questions on the US financial situation and the Fed’s financial coverage accordingly. Surprising questions or solutions may affect market volatility.
US CPI data will be specifically targeted, which will provide clues to the country’s inflation trajectory. Consumer prices rose 3.3% year on year in May, down 3.4% from the previous lifetime and 3.5% in March. The take-off development comes as the Fed is promising to begin cutting interest rates in September, which would be the first since March 2020, when the pandemic struck. Additional easing price force will likely force Wall Boulevard higher. Consensus calls for a 3.1% year-on-year price increase in June, which suggests inflation will ease sharply.
Additionally, the Producer Price Index (PPI), which represents manufacturing facility gate price movements, can be an influential indicator of inflation.
The US will start the profits season with banks heavy including Citigroup, JPMorgan Chase and Wells Fargo. The monetary area is a harbinger for world financial fitness due to the similar relationships between those heavy lenders.
Asia Pacific
China’s CPI data for June shows significant value for consumer demand as the country faces tough economic conditions due to its constituent crisis and post-pandemic recovery. On a brighter note, China’s inflation rose for the third consecutive time in May, suggesting that Beijing’s efforts to boost its fiscal expansion are having an impact. In June, economists are expecting China’s consumer spending to rise 0.4% a year. The data could push commodity prices further, indicating some financial activity in the planet’s second-largest economy.
Elsewhere, the Stock Depot of Untouched Zealand (RBNZ) is due to decide on its Reputable Money Charge (OCR), with expectations that the locker will preserve the pace at 5.5% for the 8th straight date. The locker remained closed at its last meeting in May, suggesting that interest rates have remained at restrictive levels for longer than expected. Untouched Zealand only reports quarterly CPI, which was 4% per year in the first quarter, well above the RBNZ’s target level of 1-3%.
