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.
- Tensions in Russia since Friday and through the weekend have elevated risks across global financial markets.
- 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.
|Date||Key Macroeconomic Events|
|06/26/2023||German Ifo Business Climate|
|06/27/2023||Canada CPI; US Durable Goods Orders, S&P/CS House Prices Index, US Consumer Confidence, US New Home Sales|
|06/28/2023||Australian CPI; central bank governors of the Fed, ECB, BoJ and BoE speak;|
|06/29/2023||US final GDP, Weekly Jobless Claims, Pending Home Sales|
|06/30/2023||China official PMIs; Eurozone flash HICP inflation; US Core PCE; Canada GDP|