The infoshot to help kick-start your week
Last Week
- Donald Trump was found guilty in the first criminal trial of a former US president in the nation’s history. The verdict could influence the political landscape ahead of November’s US election, with sentencing scheduled for July 11, just days before the GOP convention. Trump is expected to appeal. For traders, the focus now shifts to how the verdict will impact markets, which are already beginning to prepare for the 2024 US elections, where Trump is likely to face President Joe Biden. Meanwhile, an increasing number of US financial elites are showing support for Trump.
- European stocks are positioned to benefit from positive sentiment across Asia at the beginning of June. The region’s equities rallied, supported by a surge in technology shares and data indicating an increase in regional manufacturing activity. Additionally, Indian stocks reached record highs as exit polls suggested a significant victory for Prime Minister Narendra Modi’s party. A weaker US dollar in recent weeks, driven by optimism that the Federal Reserve may begin to ease policy, is also contributing to favourable conditions for riskier assets.
- A period of potential volatility may be approaching due to key interest rate decisions on both sides of the Atlantic. The European Central Bank (ECB) might signal a weaker euro on Thursday as it enacts its first rate cut of the cycle, diverging from US monetary policy. This week’s ECB decision will include quarterly forecasts that will be closely examined for indications of future policy directions, along with insights from ECB President Christine Lagarde’s press conference. Currently, money markets are anticipating two ECB rate cuts this year, with a slight possibility of a third. Additionally, France’s assets might draw attention today following a downgrade by S&P Global Ratings.
Market Pulse
Coming Up
- ECB Interest Rate Decision, Thursday 6th June 2024 at 1:15pm.
- ECB Press Conference, Thursday 6th June 2024 at 1:45pm.
- Halifax House Price Index (YoY), Friday 6th June 2024 at 7:00am.
Notice:
For professional advisers only, Copia does not provide financial advice, and the contents of this document should not be taken as such. The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.Open document settingsOpen publish panel
