Morning Juice – Europe Session Prep

Core inflation in China dropped to its lowest level in over three years, which is fresh evidence that families are finding it difficult to spend and puts additional pressure on the country’s annual growth objective.

The second quarter saw Japan’s economy grow at a rate that was little slower than the government’s initial projection, but it nevertheless advanced sufficiently for the Bank of Japan to keep interest rates rising later this year.

Losses are being driven by a decline in demand in China, the largest consumer of iron ore, which caused the commodity to drop to a 22-month low and below the $90/ton mark.

With the attention this week on three reports that could shed light on the demand forecast, oil recovered from its lowest finish since 2021 following a significant weekly loss that brought futures near levels considered oversold.

After years when they were the largest individual investors in their neighbor’s economy, Japanese businesses are progressively giving up on a business strategy in China that once seemed impervious to politics.

The downward trajectory is equally frustrating for bond dealers who had difficulty projecting the extent to which the Federal Reserve would boost interest rates.

04:30 ET
Eurozone Sentix Investor Confidence Index
Median Forecast -12.2 | Prior -13.9