Stocks trade cautiously ahead of crucial data

Stocks trade cautiously ahead of crucial data 150 150 Realm

Markets are quiet again this morning ahead of crucial US CPI inflation data due for release today. Economists are forecasting the report for May will show 4.7% year over year. If data continues to show rising inflation the concern is that the Fed will start reducing bond purchases and consider raising interest rates, moves that would likely have a major impact on markets.

Also due today is the ECB monetary policy statement. European stocks are trading cautiously again ahead of the announcement. Interest rates are expected to be held at record low levels, but policy makers may decided to cut back on the pace of the current bond buying program.

Early next week Boris Johnson is due to make a decision regarding further easing of restrictions in the UK. Rising Covid-19 daily infection cases could make that a difficult decision.

 

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