Mid-Week Wrap: 26 June 2024
2 6 J U N E 2 0 2 4 • I S S U E 2 9
Market Mood
May's core PCE reading, the Fed's preferred inflation gauge, will be closely monitored for progress toward the 2% target, following a lower-than-expected May US CPI that raised hopes for rate cuts despite the Fed scaling back expected cuts for 2024. Recent US flash PMI data for June indicated further downward pressure on inflation, with significant easing in services inflation. Meanwhile, the UK's final estimate of first-quarter GDP will be scrutinized for signs of weakness, potentially supporting dovish stances among BoE policymakers, with markets speculating on a rate cut in August. Additionally, the eurozone will release inflation data from three of its four largest economies, expected to show a slowdown in France and Spain and weak price growth in Italy.