Politics still setting the tone

Danske Research Team Danske Bank A/S

Market Movers ahead

In the US, the jobs report for May is in focus, with average hourly earnings as the most interesting part.
In the euro area, we look for a rebound in HICP inflation in May, while Italian political developments will also be in the spotlight.
In Japan, labour market data for April is on the agenda, which will be important for the outlook for wages and private consumption.
In the Scandies, we will get more insight into the Q1 growth figures.

Global macro and market themes

The new Italian government implies market uncertainty for now, but we do not see the debt issue leading to a new euro crisis.
USD strength could stick around near term as the US still holds a favourable cyclical position, but should abate further out.
Emerging markets are set to remain wobbly near term, although we do not see a contagious situation. However, the dust has not settled in Turkey yet.

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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