Sign up for Reuters newsletters

A look at the day ahead in European and global markets

By Kevin Buckland, Asia Markets Correspondent

Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com” style=”text-decoration: underline; color: #0274b6;” rel=”noopener”>morningbid@thomsonreuters.com.

The verdict from investors appears to be that benign U.S. inflation trumps the Fed’s rate outlook, clearing the way for gains in Asian equities, and potentially in Europe too.

The initial shock at projections for just one U.S. rate cut this year despite a very tame CPI reading just hours earlier was mitigated by Fed Chair Jay Powell’s comments that many officials were on the fence over a second rate cut and had just tacked an extra one onto 2025 instead.

A trader works, as a screen broadcasts a news conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 12, 2024. REUTERS/Brendan McDermid

With data dependency still the guiding principle, U.S. producer price readings due later on Thursday will get a lot of attention, overshadowing European releases such as Spanish inflation data and euro zone industrial production.

The conclusion of the Fed meeting means policymakers will be back on the speaking circuit, and New York Fed President John Williams kicks things off by moderating a discussion with Treasury Secretary Janet Yellen at an event hosted by the Economic Club of New York.

Williams has been of the mind – like Powell – that policy is in a good place to bring inflation steadily down to target.

Political intrigue is likely to stay squarely in the spotlight in Europe though, with Eric Ciotti asserting he is still head of France’s Republicans despite his ouster over seeking a deal with the far right.

Embattled President Emmanuel Macron got some veiled criticism from his Renaissance party too, with his former prime minister and potential successor Edouard Philippe saying in a televised interview, “I’m not sure it’s entirely healthy for the president of the republic to run a legislative campaign.”

Graphics are produced by Reuters.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Sponsors are not involved in the creation of newsletters or other Reuters news content.

Advertise in this newsletter or on Reuters.com

Morning Bid is sent every morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

Want to stop receiving this newsletter? Unsubscribe here.
To manage which newsletters you’re signed up for, click here.

Reuters Terms & Conditions and Privacy Statement