US markets are closed as the country celebrates its attempt to escape the rule of a monarch. There has been speculation in the media about US President Biden’s re-election bid. Markets are unlikely to react to such speculation at this stage. Politically, markets are primarily focused on the likelihood of change in economic policy, notes Paul Donovan, a macroeconomic analyst at UBS.
Markets expect two more ECB rate cuts this year
“The UK is demonstrating the stability of the democratic process under a constitutional monarchy with its general election. Markets, rightly or wrongly, think they know the likely outcome and are unlikely to react strongly (especially today with a media blackout until the polls close).”
“Minutes from the Federal Reserve’s June meeting suggested a desire for more evidence of slowing inflation before cutting rates.. Some economists (including this economist) are getting frustrated. Harmonized inflation is below 2% and there is deflation in almost every sector of the economy somewhere in the US. How much more slowdown is required?
“The European Central Bank (ECB) publishes an ‘account’ of its meetings, which sometimes feels like reading an endlessly long anecdote without a punchline. Investors are comfortable with the idea of two more rate cuts this year, following lower inflation. May factory orders in Germany were weaker than expected (they have been below expectations all year).”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
