📆 Friday, June 7
► European shares remain near record highs after recent gains, but the Stoxx 600 index inched 0.3% lower today. The market reacted to the European Central Bank’s rate cut, which initiated a policy easing cycle but increased the inflation outlook . Stocks are mixed but overall slightly lower with the ECB indicated a gradual approach to further rate cuts. Germany's trade surplus for April was recorded at €22.1B, below expectations (due to strong imports), with exports growing 1.6% and imports increasing by 2% MoM. German industrial production disappointed a -0.1% MoM vs. +0.3% expected.
► In the US, all major indices ended Thursday with little change as investors awaited the crucial job report. US stock futures are also near unchanged on Friday during US pre-market trading. Traders remain cautious ahead of the US jobs data (NFP data) expected later today, which is anticipated to show an addition of 180,000 jobs in May. Market participants are also keenly focused on the Federal Reserve’s policy outlook, influenced by recent weaker-than-expected US economic data and rate cuts from the Bank of Canada and the ECB. Swap markets are pricing in a full Fed rate cut by November, with high expectations for a cut in September. The USD was steady, while Treasury yields edged slightly higher.
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