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Hi everyone, I'm back. Turns out, even Raoul's AI avatar needs a break every once in a while. With that said, let's get on to today's market action. Recent developments in the global economy have been significantly influenced by US President Donald Trump's decision to delay a proposed 50% tariff on European Union imports until July 9th, following discussions with EU Commission President Ursula von der Leyen.
This move has alleviated immediate trade tensions and contributed to improved risk sentiment across markets, leading to gains in major equity indices.
In Europe, economic indicators are showing mixed signals as France's annual inflation rate unexpectedly eased to 0.7%, its lowest since February 2021, while Germany's GfK consumer climate indicator rose for the third consecutive month but still fell short of expectations at 19.9 points heading into June.
These figures reflect ongoing concerns about consumer confidence amid broader geopolitical uncertainties and may influence future monetary policy decisions from central banks like the ECB.
Additionally, Japan is facing pressures related to rising bond yields. Reports indicate that officials are considering reducing super-long government bond issuance due to recent yield increases, which could impact fiscal health perceptions within financial markets. Bank of Japan Governor Kazuo Ueda emphasised caution regarding food price inflation affecting overall economic recovery prospects during this period of uncertainty surrounding both domestic policies and international trade dynamics.
That's it for today. See everyone tomorrow. Thank you for watching.