Daily update
Daily update
- The entertainment from the US Dallas Fed manufacturing survey comments did not disappoint. Several would be met with a disparaging “OK, boomer” if only the TikTok generation read the Dallas Fed manufacturing survey. Today’s anecdotes come in the form of the Federal Reserve’s Beige Book. These comments are indirect quotes, and sanitization reduces entertainment value. Remarks on prices and pricing power are still likely to be investors’ focus.
- German preliminary consumer price inflation for May is due. This is expected to rise moderately, with energy prices the likely culprit. While this data is rarely revised from preliminary to final figures, the preliminary numbers have consistently been slightly lower than consensus all year.
- Eurozone money supply data is exciting for any monetarists that still exist, but it is not something markets care about these days. The ECB’s Knot was talking about “step by step” reductions in interest rates. Markets are already assuming a steady pace to easing will emerge.
- There is a possibility of a verdict in the criminal trial of former US President Trump. Markets are unlikely to care. Political risk has not really entered investor thinking (perhaps after the end-June debate?), and it will take time to assess whether the trial verdict will impact voting intentions.
