Mixed Chinese data fails to boost Asian markets, Euro uncertainty looms, French election concerns.

From Investing.com: 2024-06-17 00:35:39

Asian markets started the week on a quiet note, with mixed Chinese data failing to provide much momentum amidst political uncertainty in Europe. Chinese retail sales beat forecasts by rising 3.7% annually, but industrial output, fixed-asset investment, and home prices all underwhelmed.

The People’s Bank of China maintained its one-year rate, defying expectations of a cut following weak bank lending data. Despite reports suggesting room for rate cuts, internal and external constraints on policy remain. Eurostoxx 50 futures saw a 0.5% bounce, while the euro remained at $1.0700 amid concerns of a snap French election.

With no plans for emergency French bond buying, the ECB faces pressure as the spread between French bond yields and bunds may widen. The Swiss franc is also under pressure, with the euro near a four-month low at 0.9528 francs. Speculation arises that the SNB may cut rates on Thursday as futures imply a 74% chance of a cut to 1.25%.

In a busy day for markets, major events include ECB President Christine Lagarde visiting a French company, Fed’s June Empire State survey, and speeches by NY Fed President John Williams, along with Fed’s Harker and Cook. Investors are watching closely for any developments that could impact market sentiment.



Read more at Investing.com: China fails to cheer, as France scores own goal By Reuters