From Euronews: 2024-06-10 01:00:57

This week, market trends will be shaped by the outcome of the EU Parliamentary Elections and the Federal Reserve’s interest rate decision. The EU election results are expected to impact various sectors, including EV makers, fossil fuel producers, green energy companies, defense firms, and major banks. Populist parties’ rise could negatively impact green stocks like TotalEnergies and Iberdrola. Car makers like Renault and Volkswagen may face volatility due to potential policy changes around emission limits. Defence and industrial firms like Rheinmetall could be negatively impacted by populist parties. Banks may face uncertainties with discussions around joint deposit insurance policies. The euro may face downside pressure amid uncertainties and potential influence from right-wing parties.

The Federal Reserve’s interest rate decision will be a pivotal event for the global market. The US is set to release its inflation data for May ahead of the Fed’s policy meeting. The headline Consumer Price Index (CPI) rose 3.4% year-on-year in April, slightly lower than March. Consensus forecasts suggest inflation will stay the same at 3.4% for May. The core CPI, excluding food and energy, decreased to 3.6% year-on-year, showing a favorable trend in inflation. The Fed is unlikely to lower interest rates this week, but a rate cut may be on the table in September.

The Bank of Japan’s policy meeting is set to impact Asian markets, particularly the Japanese Yen. The BOJ is expected to keep the interest rate unchanged at 0.1%, but a sharp devaluation of the Yen could pressure the bank to tighten monetary policy further. China will report its CPI and PPI for May, with inflation growth signaling a positive sign for the global economy. China’s economic trajectory, impacted by Covid-19 curbs, is essential for understanding global market trends.



Read more at Euronews: Ahead in the markets: EU elections and US Fed rate decision in focus