- What are the interest rates expectations for the major central banks?
- Eurozone June PPI +0.8% vs +0.8% m/m expected
- EU says to expect some 'turbulence' in trade talks with the US moving forward
- UK July final services PMI 51.8 vs 51.2 prelim
- EU says 15% tariff rate will also apply to cars and car parts
- Eurozone July final services PMI 51.0 vs 51.2 prelim
- Germany July final services PMI 50.6 vs 50.1 prelim
- France July final services PMI 48.5 vs 49.7 prelim
- Italy July services PMI 52.3 vs 52.6 expected
- Spain July services PMI 55.1 vs 52.5 expected
- FX option expiries for 5 August 10am New York cut
- The big boys might not feel the pinch of tariffs but everyone else is
- September slowly becoming a given as Fed policymakers become more vocal on rate cuts
It was a pretty boring session with limited newsflow and just a few low tier economic releases. We've got some usual tariff talk with the EU saying that the 15% tariff will be all-inclusive, therefore applied also to cars and car parts. The EU trade chief Sefcovic also added to expect some 'turbulence' in talks moving forward, which is normal. In my opinion, the tariff trade is done and markets will focus on economic data and the Fed for the remaining part of the year.
In the markets, we haven't seen much movement as traders might be waiting for the US ISM Services PMI release due at 10 am ET. The focus will likely be on the prices component. Fed's Daly dovish comments yesterday gave the stock market another boost as rate cuts are now the driving force and we will likely need a strong growth scare or very hot data to weigh on the sentiment.
We have also Trump speaking with CNBC's "Squawk Box" at the top of the hour where he will likely boast the achievements as usual, talk about the billions in revenue they are getting with tariffs, critizise Fed Chair Powell and so on.
