Look Ahead: European markets expected up, eyes on Eurozone CPI

We're expecting to see European markets open up this morning.

Asian markets have fared well, where the Nikkei 225 is up almost up two per cent at present, as the Japanese cabinet has voiced support for the third arrow of Abenomics.

However, one member of the Bank of Japan's board (most likely Takahide Kiuchi) has voiced concerns about quantitative easing, with the minutes showing:

One member said that because it is difficult to meet the BOJ's price target, there could be speculation that the BOJ will take more extreme measures, which could cause financial imbalances.

In response, several members said that the current policy framework allows the BOJ enough flexibility.

Data released yesterday showed that US retail sales increased by 0.6 per cent in May from April. Analysts had forecast just a 0.4 per cent increase. Initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted 334,000 last week – also better than expected.

Yesterday's moves:

FTSE 6,304.63 +5.18
DOW 15,176.08 +180.85
NASDAQ 3,445.37 +44.94

Coming up:

  • UK construction figures for April at 09.30.
  • Eurozone inflation for May at 10.00, economists are expecting a rise in CPI from 1.2 per cent to 1.4 per cent this month.
  • US producer prices for May at 13.30, costs could rise faster this month, with analysts anticipating a jump from 0.6 per cent to 1.4 per cent.
  • US industrial production for May at 14.15, last month saw a crunch of 0.5 per cent, but production is expected to increase this month by 0.2 per cent.