Recent concerns about the effect of a weak Yen on the Japanese economy have sparked discussions about potential intervention or BoJ support for a July interest rate hike. The possibility of aggressive cuts to Japanese Government Bonds could potentially push the USD/JPY towards 150. While Finance Minister Shunichi Suzuki has hinted at intervention, Bruegel Senior
Forecasts
The S&P 500 futures have shown an upward trend on Friday, signaling a positive sentiment among traders as they anticipate crucial inflation data. Notably, the Nasdaq has led the gains in June with a significant rise of 6%, while the S&P 500 and Dow have also added to their value by over 3% and 1%,
In recent years, the economic performance within the eurozone has been less than stellar. However, the latest data reveals a 0.3% quarterly growth in GDP last quarter, indicating that the bloc is not currently in a technical recession. Should a recession occur later in the year, it is projected to have a minimal impact and
The upcoming US Personal Income and Outlays report holds significant importance for determining the prospects of a September Fed rate cut. Analysts are projecting a rise of 2.6% year-on-year in the Core PCE Price Index, a decrease from the previous figure of 2.8% in April. If the actual numbers come in below expectations, it could
As investors analyze the potential effects of the Australian inflation figures on the Reserve Bank of Australia’s rate decisions, attention is also focused on China. In particular, the industrial profit numbers from China play a crucial role in shaping buyer sentiment towards the Australian dollar. Economists are predicting a 4.1% year-on-year increase in Chinese industrial
The ASX 200 experienced a sharp decline of 1.01% on Wednesday, signaling a bearish trend in the market. This drop can be attributed to a variety of factors affecting investor sentiment and market dynamics. The hotter-than-expected Australian inflation numbers were a key driver behind the negative performance of the ASX 200. The Monthly CPI Indicator
BoJ Deputy Governor Ryozo Himino emphasized the significant impact of exchange-rate fluctuations on economic activity, stating that it affects inflation beyond just import prices. The Bank of Japan may need to adopt a more hawkish stance to stimulate buyer demand for the Yen. With this in mind, can the economic indicators coming out of Japan
The Jibun Bank Services PMI unexpectedly fell from 53.8 to 49.8 in June, marking the first contraction since August 2022. This decrease in the PMI, coupled with the slowest pace of output price inflation in seven months, has raised concerns about the Japanese economy. The Bank of Japan (BoJ) may need to reconsider its monetary
It is crucial to note that the CB Consumer Confidence Index dipped below 100 in April for the first time since July 2022. This drop was largely attributed to consumer concerns about inflation by Dana M. Peterson, the Chief Economist at the Conference Board. The Consumer Confidence Index serves as a key indicator of the
The stock futures for the upcoming week are displaying a mixed picture as the market edges closer to the end of June and the first half of 2024. Despite nearing record highs, there seems to be some uncertainty looming over key players. For instance, Nvidia, a prominent market heavyweight, experienced a significant 4% drop last
Consumer inflation expectations play a crucial role in shaping the outlook of an economy. The prediction of a rise in consumer inflation expectations from 4.1% to 4.3% is likely to pose a challenge for the Reserve Bank of Australia (RBA). This increase may lead to heightened concerns about inflationary pressures, which could impact the RBA’s
The Australian economy is currently facing challenges as it struggles to stay above a recession. With the last quarter showing minimal growth of just 0.1 percent and the high possibility of a negative growth in the current quarter, the Reserve Bank’s ability to stimulate economic growth through interest rate cuts is limited. Upcoming Economic Data