Good Morning Traders! Half way through the week now, we get some French, German and Italian data throughout the day.
Here is what to expect from the session.
Sentiment
May saw a second consecutive month of declines in China's manufacturing activity, adding to evidence that the post-Covid rebound in the second-largest economy in the world has slowed.
Despite threats to have him removed from office from hard-line Republicans over the debt-limit agreement he reached with President Joe Biden, House Speaker Kevin McCarthy voiced confidence on Tuesday that lawmakers will enact legislation in time to prevent a US default. On Tuesday night, the influential House Rules Committee voted 7-6 to approve the bill, removing a significant obstacle.
The debt-limit agreement would reduce spending on some federal government programmes, but it would only make a small dent in the combined budget deficits of around $20 trillion anticipated over the following ten years.
According to Patrick Wu of Credit Agricole, international investors will stay away from China assets for the next three years as the country maintains low interest rates to support a flimsy economic recovery.
In the lead-up to a forthcoming OPEC+ conference, oil maintained its largest loss in four weeks on indications of weakening demand and ample supply.
Docket
02:45 AM ET
French GDP QoQ Final
Median Forecast 0.2% | Prior 0.2% | Range 0.2%/0.0%
French HICP YoY Prelim
Median Forecast 6.4% | Prior 6.9% | Range 6.6%/5.5%
03:55 AM ET
German Unemployment Change SA
Median Forecast 13.5k | Prior 24k |Range 28.0k/-5.0k
German Unemployment Rate
Median Forecast 5.6%| Prior 5.6% | Range 5.7%/5.6%
04:00 AM ET
ECB Financial Stability Review
Italian GDP Final QoQ
Median Forecast 0.5% Prior 0.5% | Range 0.5%/0.3%
Italian GDP Final YoY
Median Forecast 1.8% Prior 1.8% | Range 1.8%/1.6%
Speakers
03:00 AM ET
ECB's Villeroy Speaks
04:30 AM ET
ECB's Visco Speaks
Good Luck Today Traders!
