Tomorrow will begin a month of June full of macro data, starting with the manufacturing PMI and the announcement on the rates of the Reserve Bank of Australia on rates. For Italy, the manufacturing PMI, the unemployment rate and GDP are highlighted. For the eurozone, inflation and manufacturing PMI tests. Looking overseas, we expect the data on construction spending but above all the manufacturing ISM index.
In detail, European inflation is expected at + 1.9% yoy in May, the highest level in three years and close to the ECB’s target. European inflation data that could spark fears ahead of next week’s ECB meeting (June 10). “The market is concerned that the ECB will start discussing tapering at its next meeting, however we believe these fears are unfounded. After the disastrous 15-year Bund auction last week, the ECB will be careful not to discuss a withdrawal of support ”, Saxo experts remark today in the Market Quick Take report.