UK Inflation Steady at 2.0%, BoE Relief, Eyes on NZ GDP Growth
The UK’s May inflation rate came in at 2.0%, which matched market expectations and held steady compared to the previous month, against a forecast of 1.9%. This probably takes pressure off hasty interest rate hikes by the BoE, though broader concerns over inflation lingered in the economic backdrop.
This morning, UK retail price index for May came a little lower than expected at 3.0% versus the consensus of 3.1%. There are still rather remarkable inflationary pressures linked to this figure that will be closely watched by policymakers and investors alike for possible long-term trends.
The GDP data of New Zealand have not come out for Q1 and are expected to be at 0.2 percent. This has put the markets on tenterhooks waiting for this number, which it does expect is going to show modest growth in the economy. A positive result may underpin the New Zealand dollar and support local equities.
Global Market Impact
Asia-Pacific Markets:
Asian markets had a mixed performance today. The Hang Seng Index saw gains driven by technology stocks, while the Nikkei 225 experienced minor declines due to concerns over domestic economic data. The broader market sentiment remains cautious as investors digest the latest trade data from Japan.
European Markets:
European markets remained stable, with investors focusing on UK inflation data and the upcoming Bank of England meeting. The DAX Index reflected cautious optimism. Despite stable inflation data, discussions on future monetary policy continue to dominate the market sentiment.
US Markets:
In the US, futures indicate a mixed opening. The focus is on the upcoming retail sales data and several Federal Reserve speeches scheduled for today. S&P 500 and Nasdaq futures show slight gains, supported by strong performance in technology stocks. Treasury yields have fallen, reflecting cautious investor sentiment ahead of key data releases.
Other Notable News
Political developments in France are adding some volatility to the forex market. Upcoming elections are expected to impact the EUR/USD pair significantly as investors react to potential policy changes.