Major European indices trade in the green.
STOXX Europe 600: +1.1%,
Germany’s DAX: +1.5%,
U.K.’s FTSE 100: +0.6%,
France’s CAC 40: +0.6%,
Italy’s FTSE MIB: +1.1%,
Spain’s IBEX 35: +0.6%.
Shipping giant Maersk raised its outlook for the year due to strong demand in the container shipping market.
European Central Bank President Lagarde said that the June rate hike was a deliberate, unanimous, move, while policymaker Wunsch said that another rate hike could be needed quickly.
Flash June CPI readings from France and Italy were cooler than expected, resulting in the deceleration of their respective year-over-year rates, Germany’s reading showed cooling also.
Germany
May Retail Sales 1.1% m/m (expected 0.0%; last -0.4%); 1.8% yr/yr (expected 0.0%; last -0.6%).
May Import Price Index 0.7% m/m (expected 0.4%; last 1.2%); 6.8% yr/yr (last 5.3%)
Germany’s flash June CPI 2.3% y/y, down from 2.6% in May and below market expectations of 2.6%.
– This marks a further decline from the over two-year high of 2.9% recorded in April, as goods inflation fell to 1.7% from 2.2%, driven by easing energy price pressures (3.4% vs. 6.6%).
Germany is looking for about EUR400 mln of spending cuts in the EU’s EUR2 trln budget.
France
flash June CPI -0.2% m/m (expected 0.0%; last 0.1%); 1.8% yr/yr (expected 2.1%; last 2.4%). May PPI 3.0% yr/yr (last 2.3%). May Consumer Spending 0.5% m/m (expected 0.2%; last -0.5%)
Italy
flash June CPI 0.0% m/m (expected 0.2%; last 0.4%); 3.0% yr/yr (expected 3.1%; last 3.2%). May PPI -0.2% m/m (last 0.3%); 7.3% yr/yr (last 6.8%)
U.K.
The U.K.’s Q1 GDP reading was revised down to 0.9% yr/yr from 1.1%, weighing on expectations for a rate hike from the Bank of England.
Q1 GDP 0.6% qtr/qtr, as expected (last 0.1%); 0.9% yr/yr (expected 1.1%; last 0.9%).
Q1 Business Investment 0.9% qtr/qtr (expected 0.7%; last -3.0%); -1.3% yr/yr (expected -1.8%; last 1.8%).
Q1 Current Account deficit GBP22.1 bln (expected deficit of GBP22.2 bln; last deficit of GBP27.2 bln)
Spain
April Current Account surplus EUR1.88 bln (last surplus of EUR4.61 bln)
Swiss
June KOF Leading Indicators 101.2 (expected 99.0; last 98.6)