China’s Fall from Grace: 24 July 2024
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Market Mood
US flash PMI data will be closely watched after June's figures indicated resilient growth and easing inflation, creating a "goldilocks" environment essential for sustaining equity market enthusiasm. Insights into the US growth environment will come from the Q2 GDP release, expected to accelerate from Q1's 1.4% annualized rate to 2.0%, and the core PCE reading, the Federal Reserve’s preferred inflation gauge, to be updated on Friday. Recent inflation updates have increased expectations for a rate cut in September, making the upcoming core June PCE and July PMI prices data crucial for policy guidance ahead of the end-of-July FOMC meeting.