📆 Tuesday, June 3
► European shares slide as ECB rate cut bets rise & growth outlook dims
European equities were mixed as markets digested weaker economic signals and looming monetary easing. The Stoxx 600 slipped 0.2%, with France’s CAC 40 down 0.25% and Germany’s DAX up 0.1%, supported by industrial names. Also the FTSE 100 (+ 0.1%) is trading slightly higher benefiting from gains in miners. Softer-than-expected Eurozone inflation further cemented expectations for an ECB rate cut this Thursday. Markets are now fully pricing in a 25 bps cut, with odds rising for another by year-end. Bond yields across the bloc fell, with Germany’s 10-year Bund yield down to 2.50%. The euro weakened to 1.138, as investors weighed rate support versus slowing growth.
► US futures fall as OECD growth forecast & upcoming jobs data fuel caution
US stock futures edged lower, with S&P 500 down 0.2%, Dow -0.3%, and Nasdaq 100 -0.1%, as investors reacted to the OECD’s US growth downgrade (cut from 2.2% to 1.6% – a significant reduction) and anticipation of soft labor data. Eyes are now on today’s JOLTs report and Friday’s nonfarm payrolls. Fiscal risk also returned to focus as Trump’s tax proposals reignited debt concerns. Treasury yields slipped, with the 10-year at 4.42%, while the dollar strengthened broadly (+0.3%) on risk-off flows. Safe-haven demand held up, but equity sentiment remained cautious amid mounting global headwinds.
► Asia: Hang Seng strong, Japan & India fall on growth & trade concerns
Asian markets saw diverging performance. Hong Kong’s Hang Seng led regional gains with a +1.53% jump, boosted by tech buying and stimulus bets. China’s CSI 300 rose 0.43%, helped by selective optimism despite renewed US-China tensions and despite disappointing manufacturing PMIs. Once again it becomes obvious that worsening US-CN trade relations is more headwinds on Wall Street than on China / HK stocks. However, Japan’s Nikkei 225 slipped 0.06% and India’s Nifty 50 fell 0.70% amid sector rotation and lingering macro concerns. Taiwan and South Korea posted modest gains. The region continued to absorb the OECD’s global warning and Beijing’s pushback on trade deal claims. Commodity-dependent equities provided some support in Asia, mirroring the gains in oil prices.
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