📆 Wednesday, June 12
► European stocks are trading higher at the start of Wednesday, potentially ending a three-day losing streak as the Stoxx 600 index is up by 0.5%, led by banking stocks. This comes amid political upheaval in France and anticipation of US inflation data and the Federal Reserve's interest rate decision. Germany's inflation rate rose to 2.4% in May from 2.2% in April, meeting consensus. UK GDP dropped to 0.6% year-over-year in April, in line with expectations, while the goods trade balance worsened. Volatility in European assets seems to be subsiding after the French far-right's gains in the European Parliament elections over the weekend. Investors are preparing for potential market disruptions depending on the Fed's upcoming announcements.
► US stock futures are little changed following the S&P 500 closing at a record high. The USD remained strong after four days of gains, reflecting market speculation on Fed actions. Investors are closely watching the upcoming US inflation report (12:30 UTC+0) and the Fed's rate decision (18:00 UTC+0), which could set the market mood for the coming weeks. The Federal Reserve is expected to hold borrowing costs at a two-decade high, with uncertainty surrounding the quarterly rate projections. US Treasuries also steadied post a solid $39 billion bond sale, reflecting strong demand for US debt.
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