Morning Juice – Europe Session Prep

Good Morning Traders.
It is Tuesday the 16th of June. Here is what to look out for today.

Sentiment
The Bank of Japan raised its benchmark interest rate to the highest since 1995 and signaled that further policy normalization lies ahead, at a policy meeting convened without the governor in attendance. The BOJ increased its benchmark rate by a quarter percentage point to 1%, according to a statement Tuesday. It also said it would keep its monthly bond purchases steady from April 2027. US President Donald Trump keeps repeating that the Strait of Hormuz – through which one fifth of the world’s oil and liquefied natural gas supplies normally flow – will reopen by Friday. But on the sidelines of the Group of Seven summit, where Iran will dominate Monday’s dinner conversation, it’s clear that his European allies don’t share his optimism Oil steadied after the biggest drop in more than two weeks as traders, shippers and producers waited for details of a US-Iran deal that’s intended to pave the way for the full reopening of the Strait of Hormuz. China’s consumer spending contracted last month for the first time since the pandemic and investment deteriorated, exposing risks still facing the economy even as it benefits from booming exports and a deescalation in tensions around Iran. China’s home prices fell at a quicker pace in May, halting green shoots seen at the start of the year that had raised hopes of a recovery.

Docket
05:00 ET
German ZEW
Current Conditions – Forecast: -78 | Prior: -77.8 | Range: -74 / -82
Economic Sentiment – Forecast: -5.5 | Prior: -10.2 | Range: 0 / -17