Morning Juice – Europe Session Prep

Good Morning Traders! This Friday we get German Industrial Production numbers.

Here is what to expect for the day.

Sentiment

With ballots remaining to be tabulated, Keir Starmer’s Labour Party is headed towards a sizable legislative majority in the UK general election. This outcome would completely upend British politics following the collapse of Rishi Sunak’s Conservatives.

The Chinese central bank announced that it now had “hundreds of billions” of yuan worth of the assets at its disposal through agreements with lenders, taking the next step towards selling government bonds to quell a record-breaking rise.

Following an exit poll that showed the Labour Party would win the election with a landslide, and with Keir Starmer expected to take office as prime minister on a platform of increased economic stability, UK equity futures rose while the pound remained stable.

Unexpectedly, household expenditure in Japan decreased in May. This suggests that consumption won’t be the main engine of the economy in the second quarter and complicates the outlook for the central bank’s upcoming interest rate hike.

This month, currency speculators will have to wait anxiously until the Bank of Japan’s policy decision on July 31 in hopes that the beleaguered yen may finally receive some respite from a possible raise in interest rates and a reduction in bond purchases.

President Christine Lagarde of the European Central Bank stated that before further lowering interest rates, the bank needs more proof that inflation is returning to the 2% target.

Good Luck today, traders!