US June CPI came in softer than expected, weighing on the US dollar and lifting stocks as inflation pressures eased.
Middle East tensions remain elevated after US strikes on Iran. Oil prices stay high, with President Trump warning of possible attacks on energy infrastructure next week.
Fed Chair Kevin Warsh said the fight against inflation is not over despite the softer CPI report. Markets now await his second day of testimony.
US June PPI data is due today, with Core PPI expected to edge higher and provide another key inflation signal.
China’s Q2 2026 GDP growth slowed to 4.3%, while investment contracted sharply. Industrial production and retail sales were comparatively stronger.
Bank of England Governor Andrew Bailey urged the new UK government to focus on boosting economic growth.
The Bank of Canada is widely expected to keep interest rates unchanged at 2.25%, with markets also watching policymakers’ comments on the US economic outlook.
The financial landscape is marked by easing inflation pressures in the US, rising tensions in the Middle East affecting oil prices, and global economic growth concerns, particularly in China and the UK.
