Today the Federal Reserve is beginning its June monetary policy meeting, but there will be no results on that front until tomorrow’s press conference. For now, there are other fundamental events to influence the financial markets.
First off, Germany published its final inflation rate reports for May, which came in at 2.5% YoY and 0.5% MoM, both meeting the forecasts exactly, not surprising anyone.
France also delivered an inflation rate report for the previous month, which showed a result of 1.4%, also in line with the forecasts.
The United Kingdom slightly disappointed investors with its latest employment change data, which indicated fewer jobs were created than expected, though the unemployment rate has dropped to 4.7% as predicted.
The bulk of fundamental reports today will come from the United States. These include retail sales for May, as well as numbers on industrial production and the housing market, plus the May PPI report.
US stock indices today will likely trade slightly higher, though nothing impressive is expected, amid the relatively quiet economic calendar and the anticipation of the Federal Reserve’s policy meeting.
Companies to keep an eye on today include planemakers Airbus and Boeing, after the European Union and the United States signed a deal to lift mutual sanctions regarding subsidies to these respective companies, which were previously in place due to each side feeling the other is violating fair competition rules.
Another agreement was also announced today, this time between Australia and the United Kingdom. The two countries have reached a new trade arrangement, one that is likely very important to the UK now that it has left the European Union.
Of interest today is also Bitcoin, as the cryptocurrency managed to once more climb above $40,000. The optimism was sparked by Elon Musk giving people hope that Bitcoin can once more be used to buy Tesla cars. There is also news of a new substantial update to make Bitcoin more secure, which is coming this year.
