Morning Juice – US Session Prep (11th June)

Sentiment
Traders are buying the dip in stocks as a swift conclusion to the latest round of US strikes against Iran raised expectations that talks to reopen the Strait of Hormuz will get back on track. The European Central Bank is set to raise interest rates for the first time since 2023, judging it can no longer ignore the upswing in inflation caused by the Iran war.
The big question for Thursday’s European Central Bank decision is whether a consecutive interest-rate increase in July is possible. Even if the answer is yes, a euro rally may not materialize. Bank of Japan Governor Kazuo Ueda’s hospitalization is generating uncertainty among investors over the central bank’s messaging at its policy meeting next week, even as they remain convinced officials will raise interest rates. China’s rapid adoption of artificial intelligence in the workplace has prompted an unusually blunt call from a state-run newspaper to protect labor rights, as Beijing considers how to contain risks posed by the new technology.

Docket
8:30 ET
US PPI Data for May
PPI YoY – 6.4% | Prior: 6% | Range: 6.5% / 6%
PPI MoM – 0.7% | Prior: 1.4% | Range: 1.2% / 0.3%
PPI Core YoY – 5.4% | Prior: 5.2% | Range: 5.5% / 4.3%
PPI Core MoM – 0.5% | Prior: 1% | Range: 1.1% / 0.2%

8:30 ET
Weekly Jobless Claims
Initial – 220K | Prior: 225K | Range: 232K / 205K
Continued – 1.785M | Prior: 1.777M | Range: 1.794M / 1.733M

13:00 ET
US 30-Year Bond Auction
Prior High Yield – 5.046%
Prior Bid-to-Cover – 2.3

Speaker & Events
8:45 ET
ECB Press Conference with President Lagarde

Good Luck!