China's data remains weak
- G7 Meeting
- CAD Building Permits m/m: 11.6%
- CNY CPI y/y: 1.2%
- CNY PPI y/y: -4.6%
China’s imports plunged the most since February and exports dropped for a third straight month. The slowdown in trade adds to the struggling Chinese economy as the weak data adds further evidence for more Central Bank support. China’s trade balance increased unexpectedly to 59.5B against a forecast 44.9B. Adding to the weaker Chinese data was last night’s CPI reading. China’s inflation in May posted a worse than expected 1.2% against a forecast 1.3%, again further evidence that suggests more easing may be on the way.
The G7 summit in Kruen, Germany concluded yesterday. European officials were urged by world leaders to resolve the financial crisis in Greece. Talks between the Greek government and its creditors will resume today. US and German leaders also stood firm on sanctions against Russia as a deal to end fighting in Ukraine remains in talks.
- UK Trade Balance
- US JOLTS Job Openings
- JPY Core Machinery Orders m/m
- AUD RBA Gov Stevens Speaks
The main focus of the day will be on the US Jolts job data, this will be the last significant labour market data ahead of the 16th-17th June FOMC meeting. In Yellen’s view, the hiring rate reflects rising confidence, whilst the quit rate reflects increased employee confidence in the labour outlook. Improvements in both series would add to the growing amount of evidence that the labor market is very close to normalising whilst raising hopes that a rate hike could be executed this month.