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Japanese PMIs point to ongoing recovery

Chris Scicluna
Emily Nicol
  • Japanese department store sales data flattered by base effects related to Covid restrictions
  • Euro area PMIs to point to ongoing services recovery; but French INSEE flags weaker retail optimism
  •  UK public borrowing exceeds expectations

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UK inflation steadies, but peak still months away

Chris Scicluna
Emily Nicol
  • Euro area consumer confidence set to remain at historically low level
  • Powell to repeat to Congress Fed commitment to bringing inflation back to target

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Macron loses parliamentary majority

Chris Scicluna
Emily Nicol
  • No take-up at BoJ’s latest JGB purchase operation as Kuroda repeats new yen mantra

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Fed hikes by 75bps as it heads towards a restrictive stance

Chris Scicluna
  • Despite intensified price pressures, the BoE is likely to hike by just 25bps today as GDP weakens and the external demand outlook clouds
  • Japan’s adjusted trade deficit hit a series high due to a surge in energy imports

 

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ECB calls emergency Governing Council meeting

Chris Scicluna
  • The PBoC eschewed a rate cut, helping the yuan to appreciate. 
  • Japan’s services data signalled the likelihood of firm GDP growth in Q2 with machine orders up sharply too. 
  • The Fed now seems bound to hike the FFR target range by 75bps later today. 

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