G20 and Eurozone inflation amongst market movers today – Danske Bank

According to analysts at Danske Bank, the key focus today is the G20 summit starting in Osaka.

Key Quotes

“Although the long-awaited meeting between US President Trump and Chinese President Xi is only scheduled for tomorrow (3:30 CEST), headlines surrounding the summit, especially on the topic of trade and military tensions with Iran will drive sentiment today. The odds have been rising for a ceasefire in the trade war after Trump reached out to Xi last week, but the risk of Trump increasing tariffs if the summit does not bring any progress still haunts.”

“On the data front, the most important release today is the June euro area HICP print. In May, core and headline inflation disappointed markets. For the June print, we expect euro inflation to continue its roller-coaster ride, as base effects remain in the driver's seat and we look for core inflation to jump back to 1.2%.”

“Inflation figures will also be in focus across the Atlantic with the PCE core print for May. The Fed lowered its inflation forecast significantly at the latest meeting and low inflation is one reason it has become even more dovish.”