Market movers today
This morning we published our biannual Big Picture publication ' From boom to cruising speed' containing our updated macro forecast for the global economy. After a strong 2017, the global economy has lost some momentum in 2018. However, the global economy will still grow at a decent pace in 2018-19. Inflation pressures are set to rise only gradually, prompting cautious monetary policy tightening. The risks to our forecast are tilted to the downside from a possible Italian debt crisis and an escalation of global trade tensions.
With regard to today's economic data releases, we have another day of tier 2 data on the agenda. Initial jobless claims are likely to remain low, indicating a strong labour market. Final EA GDP figures are not expected to record any changes from the earlier releases.
The Turkish central bank announcement at 13:00 CEST will be in focus. We expect Turkey's central bank, the TCMB, to shift up its overnight rate corridor: a 50bp hike in its borrowing rate and a 75bp increase in its lending rate in order to normalise the monetary policy framework following the emergency hike in May 2018. See Flash Comment - Turkey: external pressures, emergency hike and the outlook for the TRY , 24 May.
To read the entire report Please click on the pdf File Below: