- Italy to be led by populist
- Raft of data releases to end the week
By Jonathan Russel
The potential trade war is the dominant theme for the market at the moment after US starts to impose steel and aluminium tariffs on its closest allies in Canada, Mexico and the EU. The move drew strong criticism from these countries and retaliatory measures are on the way. European Commission President Jean-Claude Juncker immediately condemned the move. Canadian Prime Minister Justin Trudeau criticized Trump’s steel and aluminium tariffs as “totally unacceptable” and announced retaliatory tariffs on CAD 16.6b in US imports. The Mexican Economy Ministry said there would be “equivalent” measures to counter the US steel tariffs.
Italy to be led by populist
Italy took a back seat as the populist government is finally formed. Giuseppe Conte could be sworn in as Prime Minister as soon as today. While a clash between the Eurosceptic government and the EU is inevitable, at least for a short while, the turmoil has abated.
Raft of data releases to end the week
UK Purchasing Managers’ Index (PMI) manufacturing is a major focus in the European session, and should indicate the strength of rebound in quarter two in UK economy. Eurozone and the Swiss will also release PMI manufacturing data. However the main focus will be the Non-Farm payroll report from US is the major focus later in the day. NFP are expected to show 190k growth in May. Unemployment rate is also expected to be unchanged at 3.9%.