📅 Friday, June 27
► European markets advance as inflation fears ease & trade deal optimism rose
European equities extended gains, boosted by easing inflation concerns and positive momentum on global trade talks. The Stoxx 600 rose +0.85%, with French CAC 40 leading the charge (+1.30%). Also the German DAX (+0.60%) and UK's FTSE 100 (+0.60%) rose. Bond yields edged up modestly — Germany’s Bund (10Y) at 2.58% and UK 10Y at 4.50%. EUR/USD is little changed near 1.172. Traders digested the inflation data from France and Spain (both above expectations) and the positive comments on the US trade agreements with China and the G7 partners, which brightened sentiment ahead of the weekend. The focus will be on further signals from the Fed and today's important US inflation data (PCE).
► US futures gain as Fed cuts are priced in & trade hopes increase
US futures are moderately higher (S&P 500 +0.2%, Nasdaq 100 +0.2%, Dow +0.2%) as investors digested increasingly dovish Fed rhetoric and apparently advanced US-China trade talks. The Nasdaq 100 hit a record Thursday, with the S&P 500 now just 0.2% below its all-time high. Nike surged up to +11% pre-market after reporting a rebound in sales, boosting sentiment across apparel. The 10Y Treasury yield ticked up moderately (+2 bps) to 4.27%, while the dollar index steadied after four days of declines. Markets now price in at least two Fed rate cuts by year-end, and await PCE inflation data for confirmation that inflation remains on path towards 2%.
► Asia mixed as Japan rallies above 40,000; China drags on weak industrial data
Asian equities ended mixed. Japan’s Nikkei broke above 40,000 for the first time since January, surging +1.43% on chip strength and yen tailwinds. India’s Nifty rose +0.35%, Taiwan +0.39%, and Singapore’s STI +0.7%. However, China lagged — Shanghai fell -0.7%, Hang Seng -0.17%, and CSI 300 -0.61% — as industrial profits dropped -9.1% YTD. Korea’s Kospi declined -0.77%, and Australia’s ASX 200 lost -0.43%. In FX, USD/JPY rose to 144.52, EUR/JPY to 169.35. Markets remained buoyed by global trade headlines, but China growth concerns added friction to the regional outlook.
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