- European index futures gain; we also see higher buying activity on US indexes, after yesterday's sell-offs
- U.S. PPI inflation (1:30 PM BST) and a preliminary reading of consumer sentiment and inflation expectations according to the University of Michigan in focus for markets (3 PM BST)
After yesterday's sell-off in U.S. technology indices, global markets are slowly trying to return to growth ahead of the PPI and consumer sentiment releases from the United States. Wall Street is certainly hoping that PPI inflation will show a similar decline to yesterday's CPI, which will give the Federal Reserve more certainty regarding rate cuts in the fall. Regarding the consumer reading, which will be released at 4pm today, financial markets see no chance of significant changes from May's readings.
However, a stronger drop in sentiment and lower inflation expectations could provide another important puzzle in terms of the broader picture of the overall US economy. With investors 'calming down', at least for the moment, vis-à-vis the trajectory of inflation, attention may gradually shift toward economic data. It is in these that investors will look for possible 'recession signals'. Investors are also waiting for the results and comments of the largest US banks, which will publish their results for the second quarter of the year today.
Detailed calendar of the day:
8:45, France - final CPI inflation for June: 2.1% forecast vs. 2.1% previously (0.1% m/m forecast vs. 0.1% previously
9:00, Spain - Final CPI inflation for June: 3.4% forecast vs. 3.4% previously (0.3% m/m forecast vs. 0.3% previously)
14:30, United States - PPI producer price inflation data for June:
- PPI y/y: forecast 2.3% y/y; previous 2.2% y/y;
- PPI m/m: forecast 0.1% m/m; previous -0.2% m/m;
- PPI core y/y: forecast 2.5% m/m; previously 2.3% m/m;
- PPI core m/m: forecast 0.2% y/y; previously 0% y/y;
14:30, Canada - building permits:-5.2% m/m vs 20.5% previously
16:00, United States - Consumer Sentiment and Inflation Expectations by the University of Michigan for June (preliminary data)
- Consumer Sentiment: 68.5 vs. 68.2 previously
- Current situation rating: 66 vs. 65.9 previously
- Expectations rating: 69.3 vs 69.6 previously
- Short-term inflation expectations (1 year): forecast 2.9% previously 3% m/m
- Long-term inflation expectations (5-year) forecast 3% y/y; previous 3% y/y
Financial results
- 11:55 AM BST- J.P. Morgan results (JPM.US, 1:30 PM BST conference call with analysts)
- 12:00 PM BST - Wells Fargo results (WFC.US, 1 PM BST conference call with analysts)
- 13:00 PM BST - Citigroup results (C.US, 4 PM BST conference call with analysts)
