PREVIOUS TRADING DAY EVENTS 03 July 2023

The monthly Swiss CPI change figure showed that consumer prices increased just by 0.1. Swiss inflation dropped but economists still expect the Swiss National Bank to raise interest rates at least one more time during its next meeting in September.

Normally, these figures would have allowed the SNB to halt its monetary tightening, said Charlotte de Montpellier, an economist at ING. However, at the latest press conference, the SNB was quite clear and does not seem to want to take account of inflation that is temporarily below 2. As a result, and given that the other central banks are still in the process of raising their rates, I believe that the SNB will raise its rate one last time in September.

Annual core inflation was 1.8, down from 1.9 in May.

Source httpswww.reuters.commarketseuropeswissinflationdips17juneratehikestillexpected20230703

Eurozone manufacturing activity contracted fast in June as persistent policy tightening by the European Central Bank. HCOBs final manufacturing Purchasing Managers Index PMI fell to 43.4 from Mays 44.8.

As per the PMIs report yesterday, Germanys manufacturing sector contracted fast as output and new orders moved to lower levels. The HCOB final Purchasing Managers Index PMI for manufacturing fell to 40.6 from 43.2 in May, marking the 5th consecutive monthly drop.

Conditions in the manufacturing sector have undoubtedly worsened, but this is not a crash, said Cyrus de la Rubia, chief…