Daily Digest:
1 December: Global bonds and USTs backed up to higher yields Thursday, as US stock index futures were mixed, despite US PCE data showing inflationary pressures cooling. Friday's focus is on US and global PMI data, plus Powell speaks as the Fed go into its blackout period

Hawkish Tones from BoE and Powell, Flash PMI Data Disappoints, Russia in the Spotlight


Macroeconomic/ geopolitical developments

  • Further hawkish moves from major central banks were seen last week, as the Bank of England hiked more than expected after core inflation increased sharply.
  • The Swiss National Bank also hiked with an indication of further increases to follow.
  • Deterioration in the global June Flash PMIs reflect continued economic slowdown, as PMI data for major economies disappointed across the board, particularly in Services.
  • A meeting between Chinese President Xi and US Secretary of State Blinken calmed US/China tensions earlier last week, but relations took a negative hit following President Biden referring to President Xi as a dictator.
US/China tension
  • Tensions in Russia since Friday and through the weekend have elevated risks across global financial markets.
Russia Wagner
  • Global financial market developments
  • The major US stock averages were significantly lower.
  • European and Asian indices were also notable lower.
  • US and European Bond were in wider consolidation but probing to lower yields amid global slowdown concerns.
  • The US Dollar Index bounce from a multi-week low.
  • Gold sold off, breaking below and negating the June base.
  • Oil stayed in a range but retains a more negative tone with global slowdown concerns.

Key this week

  • Geopolitical: Tensions in Russia will need to be monitored and will likely keep risks elevated across global financial markets.
  • Central Bank Watch: Central bank governors of the Fed, ECB, BoJ and BoE speak on Wednesday.
  • Macroeconomic data: US Consumer Confidence will be watched Tuesday, whilst the Fed’s preferred inflation reading, the Core PCE is released on Friday.
DateKey Macroeconomic Events
06/26/2023German Ifo Business Climate
06/27/2023Canada CPI; US Durable Goods Orders, S&P/CS House Prices Index, US Consumer Confidence, US New Home Sales
06/28/2023Australian CPI; central bank governors of the Fed, ECB, BoJ and BoE speak;
06/29/2023US final GDP, Weekly Jobless Claims, Pending Home Sales
06/30/2023China official PMIs; Eurozone flash HICP inflation; US Core PCE; Canada GDP

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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