Today, investors’ attention is focused on inflation data in the UK and Canadian, as well as FOMC minutes
On Tuesday, the Russian Defense Ministry said that some troops are beginning to return to their bases. The detente of geopolitical tensions has provoked an influx of investor funds into risky assets. Meanwhile, gold and oil prices declined yesterday.
The US producer price index, which measures inflation between factories and industries, rose 1% (+0.2% expected), well above analysts’ expectations.
According to preliminary information, the US Federal Reserve will begin cutting its balance sheet by $60 billion in June or July. A decrease in the balance sheet will lead to an increase in the dollar index.
On Tuesday, the Russian State Duma adopted a resolution to send Putin to recognize the Donetsk and Luhansk republics as independent states. Russia maintains ties with the self-proclaimed republics and, in particular, issues Russian passports to their residents, but at the same time claims that it is not a party to the conflict, accusing the Ukrainian authorities of failing to comply with the Minsk agreements. Ukraine considers what is happening in eastern Ukraine a war with Russia. It calls the neighboring country an aggressor, refusing to negotiate with the Donetsk and Lugansk republics representatives. German Chancellor Scholz called the possibility of Russia recognizing the independence of the Donetsk and Lugansk republics a political disaster.
Asian markets have been rising today since the opening, following the US indices. Japan’s Nikkei 225 (JP225) jumped by 2.22%, Hong Kong’s Hang Seng (HK50) gained by 1.30%, and Australia’s S&P/ASX 200 (AU200) added 1.08%. China’s consumer inflation rate fell to 0.9% in annual terms. Meanwhile, the producer prices index (PPI) fell to 9.1% in annual terms. Analysts expect the People’s Bank of China to cut interest rates in the coming months amid a difficult economic outlook.
S&P 500 (F) (US500) 4,471.07 +69.40 (+1.58%)
Dow Jones (US30) 34,988.84 +422.67 (+1.22%)
DAX (DE40) 15,412.71 +298.74 (+1.98%)
FTSE 100 (UK100) 7,608.92 +77.33 (+1.03%)
USD Index 95.98 -0.39 (-0.41%)
News feed for: 2023.07.04
- China Consumer Price Index (m/m) at 03:30 (GMT+2);
- China Producer Price Index (m/m) at 03:30 (GMT+2);
- UK Consumer Price Index (m/m) at 09:00 (GMT+2);
- Eurozone Industrial Production (m/m) at 12:00 (GMT+2);
- US Retail Sales (m/m) at 15:30 (GMT+2);
- Canada Consumer Price Index (m/m) at 15:30 (GMT+2);
- US Industrial Production (m/m) at 16:15 (GMT+2);
- US Crude Oil Reserves (w/w) at 17:30 (GMT+2);
- US FOMC Meeting Minutes at 21:00 (GMT+2).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
