"The most important development came from inflation data. Core consumer prices rose at their slowest annual pace since early 2021, easing concerns that inflation could reaccelerate. This reinforces expectations that the Federal Reserve may be closer to cutting interest rates later this year. Producer prices, which measure costs at the wholesale level, ticked higher mainly due to energy prices, but did not change the broader picture of gradually cooling inflation."
"Earnings season began with mixed reactions. Shares of JPMorgan and Citigroup fell after reporting lower profits, while Morgan Stanley and Goldman Sachs gained on stronger-than-expected results. Technology sentiment improved after Taiwan Semiconductor posted a sharp rise in profits, boosting confidence in artificial intelligence-related investments. Housing data also surprised positively. New and existing home sales beat expectations, supported by falling mortgage rates that are approaching 6%. In fixed income, municipal and corporate bonds outperformed U.S. Treasuries as investor demand remained strong."
"European markets posted modest gains overall, supported by improving economic data and stabilizing industrial activity. Germany delivered a key positive surprise as its economy expanded for the first time in three years, ending a prolonged recession. Growth was driven mainly by higher household and government spending, although exports weakened due to U.S. tariffs, a stronger euro, and competition from China. As a result, Germany's trade surplus fell sharply, reflecti"
U.S. markets closed mixed as large-cap indexes paused and smaller and mid-sized companies continued to outperform, indicating a rotation toward value-oriented and domestically focused stocks. Core consumer prices rose at the slowest annual pace since early 2021, reinforcing expectations that the Federal Reserve may be closer to cutting interest rates later this year. Producer prices ticked higher mainly due to energy but did not alter the broader cooling trend. Earnings produced mixed results among big banks, technology improved after Taiwan Semiconductor’s profit rise, housing sales beat forecasts, and municipal and corporate bonds outperformed Treasuries. European growth returned, led by Germany’s expansion.
Read at London Business News | Londonlovesbusiness.com
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