Mid-Week Wrap: 03 July 2024
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Market Mood
Key US data to monitor includes the release of June non-farm payrolls, with early flash PMI data suggesting sustained job additions through mid-2024. The June employment report might offer insights into the Fed's potential rate cuts, and the week will also feature important cues such as the June Fed minutes and an appearance by Fed Chair Jerome Powell. Recent flash PMI data showed that average prices in the US increased at the slowest pace in five months in June, easing concerns about persistent price pressures, especially in services. In Europe, political developments will take center stage as elections occur in the UK and France. Confirmation of easing inflationary pressures in the eurozone will be closely watched, following the HCOB Flash Eurozone PMI, which has indicated falling price gauges in recent months, supporting the ECB's June rate cut. In Japan, core inflation in the capital rose in June due to higher fuel bills and increased import costs driven by a weak yen, sustaining expectations for a near-term interest rate hike by the central bank. Separate data showed that factory output nationwide rebounded in May as automakers recovered from shipment disruptions, providing hope for a moderate economic recovery.