PREVIOUS TRADING DAY EVENTS 30 June 2023

CPI Flash estimates released on Friday showed that Inflation in the Eurozone keeps declining. Inflation in the 20 countries that share the euro fell to 5.5 this month from 6.1 in May. Germany is the only country to report an increase.

The European Central Bank is probably not going to consider this as important and it might go for a ninth consecutive rate hike for July. ECB President Christine Lagarde said this week that the central bank was unlikely to call a peak in rates any time soon, and most policymakers see a further hike in September as well.

Inflation is still high and sticky but momentum is moderating, said Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management. But core inflation excluding energy and food, which ECB policymakers see as a better gauge of the underlying trend, only edged lower, to 6.8 from 6.9 far from the sustained drop the central bank wants to see.

The ECBs job remains unenviable, as inflation figures across EU countries are beginning to show a quite significant divergence, said Neil Shah, a director of research at Edison Group.

Source httpswww.reuters.commarketseuropeeurozoneinflationfallsagainjuneenergypricestumble20230630

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