Morning Juice – Europe Session Prep

Good Morning Traders! This Friday we get Eurozone CPI, among comments from a number of ECB speakers.

Here is what to expect for the day.

Sentiment

China’s consumer spending unexpectedly dropped in April, but industrial production increased, underscoring the world’s second-largest economy’s uneven recovery. China’s house prices plummeted at a higher rate in April, highlighting why the government is ramping up measures to address the years-long property problem.

Several Federal Reserve officials suggested the central bank should maintain borrowing costs high for longer as policymakers await further evidence that inflation is moderating, implying they are not in a hurry to decrease interest rates.

Isabel Schnabel, a member of the European Central Bank’s Executive Board, advised against consecutive interest rate reduction in June and July. “Based on current data, a rate cut in July does not seem warranted,” she told the Nikkei newspaper in comments published Friday. “We should look very carefully at the data because there is a risk of easing prematurely.”

Following a surprising decrease on Monday, the Bank of Japan maintained its normal debt buying levels. On Friday, the central bank offered to acquire the same quantities of debt due in one to ten years and more over twenty-five years as in previous operations. This comes after a drop in the buying amount of notes maturing in five to ten years on Monday.

Good Luck today, traders!