- The dollar fell to its lowest level in two weeks, while stocks rose as traders reacted positively to improved Chinese data and comments from Treasury Secretary Janet Yellen.
- The yen rose more than 1% against the dollar after Bank of Japan Governor Ueda mentioned the possibility of ending the developed world's last key negative interest rate.
- Meanwhile, the STOXX 600 in Europe rose 0.5%, and Wall Street futures indicated gains. Tesla rose 5% in premarket trading in the United States following an upgrade from Morgan Stanley. Following a report that the government is considering changes to a contentious tax on banks' windfall profits, Italian banks led gains among European lenders.
- China's economy appears to be stabilising following a sharp downturn. Strong credit data released on Monday indicated that recent steps to support the real estate market may be beginning to lift household demand for mortgages, while corporate loans also increased.
- Eurozone GDP forecast lowers to 0.8% vs 1.1% for 2023 and 1.3% vs 1.6% for 2024. Sees German GDP -0.4% in 2023 vs 0.2% before. Sees Eurozone inflation at 5.6% in 2023 vs 5.8% forecast in May, and expects 2.9% in 2024 vs 2.8% forecast in May.
