Highlights
Oil prices are up again and risk assets on the back foot after President Trump left his China summit with no clarity on potential Chinese involvement in opening the Strait of Hormuz or ending the war.
Rising oil prices, hawkish comments from Federal Reserve officials after super-hot US inflation data have prompted markets to price out completely any Federal Reserve rate cuts this year and to start pricing in a rate increase in the first half of 2027. These expectations are pushing up bond yields and giving the dollar a lift in currency markets. Meanwhile, hotter than expected Japanese producer prices overnight added to expectations of a rate increase from the Bank of Japan, another negative for risk assets and global bond markets.
In scheduled economic reports, the New York Fed's Empire regional manufacturing index is due at 8:30 am ET and the US industrial production report at 9:15 am ET. for Empire, the Econoday consensus sees 7.8 for May versus 11.0 in April, which would suggest ongoing slow expansion in business activity. For industrial production, forecasters expect a modest 0.2 percent increase in industrial production in April after a 0.5 percent decrease in March. Capacity utilization is seen nearly flat at 75.8 percent from 75.7 percent in March.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.