Daily Digest:
w/c 17 June 2024: The US data highlight this week is Retail Sales on Tuesday, with global Flash PMI data on Wednesday. Plus on the central bank side we get the RBA, PBoC, SNB and BoE all in play

Stocks dip with “higher for longer fears”, with PMI and US jobs data now in focus


Macroeconomic/ geopolitical developments

  • Global stock markets experienced sharp declines due to a spike in US Treasury yields to four-week highs, driven by upbeat economic data and disappointing debt auctions, which heightened concerns about inflation and growth, plus led to a steepening yield curve and increased uncertainty about Federal Reserve interest rate cuts.
US 10yr yield chart
US 10yr yield chart
  • Elevated rates are expected to persist, driving higher yields, and saw global equity market declines last week, as central banks adopt a “higher-for-longer” strategy to control inflation.
  • US Treasuries rose and equities rebounded on Friday after inflation data matched expectations, with the PCE price index increasing 0.3% and core PCE rising 0.2%, easing investor concerns and reinforcing the likelihood of a potential interest rate cut later this year.
  • As the Federal Reserve enters its blackout period, investors worldwide are closely monitoring key economic indicators, particularly US employment data Friday and global PMI figures on Monday and Wednesday, to gauge potential impacts on future monetary policy decisions and market movements.
US Nonfarm Payrolls

Global financial market developments

  • US and global equity averages extended slowly lower last week, despite a solid rebound on Friday.
  • US and European bonds were little changed on the week, initially moving to higher, then lower yields.
  • The US Dollar Index was choppy in a sideways range, in consolidation mode.
  • Gold futures consolidated through last week.
  • Oil futures stayed in consolidation mode, with a sharp rally then sell off.

Key this week

Central Bank Watch: The main central bank activities this week are the Bank of Canada Interest Rate Decision and Policy Statement on Wednesday and the EU Monetary Policy Statement on Thursday.

Macro Data Watch: The main macro data released this upcoming week are the global PMI data throughout the week and the US Employment data on Friday.

DateMajor Macro Data
06/03/2024Global Manufacturing PMI; US ISM Manufacturing PMI
06/04/2024German Unemployment Change, Rate; US Factory Orders and JOLTS Job Openings
06/05/2024Global Service PMI; US ISM Service PMI; Bank of Canada Interest Rate Decision and Policy Statement
06/06/2024German Factory Orders; EU Retail Sales, ECB Interest Rate Decision, Policy Statement and Press Conference
06/07/2024Chinese Trade data; EU Employment change and GDP; US and Canadian Employment reports

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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