Financial markets have offered a fairly muted response to the historical Singapore summit, despite President Donald Trump describing it as a success. Global sentiment was initially elevated after the US President and North Korean leader Kim Jong-un signed a denuclearization agreement which eased geopolitical tensions. However, the lack of insight offered on the steps taken by both sides to reach this monumental goal left investors somewhat cautious.
Sterling weakened against the Dollar after a mixed UK jobs report prompted investors to scale back expectations over the Bank of England raising UK interest rates this year.UK wage growth unexpectedly eased to 2.8% from 2.9% during the three months to the end of April, while the unemployment rate remained unchanged at 4.2%. With the Pound partially driven by monetary policy speculation, fading expectations of the BoE hiking rates could drag the currency lower.
Key events today kick off with the Swiss industrial production and PPI releases followed by the key UK CPI report and Eurozone industrial production figures among other minority reports. Later, markets will brace for the US producers’ price index (PPI) and EIA crude stockpiles data ahead of the highly-influential FOMC decision.