The Ultimate Guide to European and Global Markets: Ollie Watkins' Goal Sends England to Euro Final, But What Does It Mean for Your Investments?
As the excitement builds for Sunday's European Championship final between England and Spain, the financial world is also on edge with the battle against inflation heating up. All eyes are on the U.S. as the latest CPI numbers are set to be released today, with expectations of a slowdown in annual headline CPI to 3.1% and steady core CPI at 0.2%.
Stock markets have been soaring to record highs, fueled by big tech gains and anticipation of rate cuts in the coming months. With Fed funds futures indicating a 73% chance of a rate cut in September, economists are closely watching the inflation data to see if it aligns with these expectations.
However, the year has seen wild swings in rate-cut bets, and any surprise spike in inflation could shake up projections, impact asset prices, and weaken the yen once again. The yen is currently trading weakly against the dollar, while markets in Tokyo, Taipei, and New York continue to hit new highs.
In other news, the Bank of Korea and Bank of England made key announcements, with the former holding rates steady and the latter surprising markets by not hinting at an August rate cut. Sterling made gains on the news, reaching a four-month high.
Key events to watch out for today include final German CPI, UK monthly GDP, U.S. CPI data, as well as earnings reports from Delta Airlines and PepsiCo. Additionally, speeches from Fed's Musalem and Bostic could provide further insights into the future of monetary policy.
In conclusion, the current market trends are heavily influenced by inflation data and expectations of rate cuts. Investors should stay informed and monitor upcoming announcements closely to make well-informed decisions about their portfolios.