Market Comment | Softer US inflation further fuels Fed rate cut speculation
Published on Wednesday, June 12, 2019
Market Comment | Softer US inflation further fuels Fed rate cut speculation
Summary
The US inflation and ongoing US-China trade frictions have been the main global market drivers today. Both of them have increased markets expectation of monetary policy easing.
Key points
- Key points:
- US CPI inflation in May came in below expectations.
- Uncertainty over whether Trump and Xi will meet at G-20 left investors unnerved.
- ECB’s official showed a dovish tone.
Geographies
- Geography Tags
- Global
Topics
- Topic Tags
- Financial Markets
Tags
- Tags
- financial markets
Authors
Vitor Sun Zou
Cristina Varela
BBVA Research - Principal Economist