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Japan Producer Prices Rise 0.8% On Year In May





Business sentiment data from Germany is due on Monday, headlining a light day for the European economic news.


Producer prices in Japan were up 0.8 percent on year in May, the Bank of Japan said on Tuesday.


That was shy of expectations for an increase of 1.0 percent and down from the upwardly revised 1.0 percent gain in April (originally 0.9 percent).


On a monthly basis, producer prices dipped 0.3 percent after easing 0.1 percent in the previous month.


Individually, prices were down for communications, transportation, advertising and maintenance, while prices were up for real estate. Finance was roughly flat.


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European Economics Preview: Germany GfK Consumer Sentiment Data Due





Consumer confidence from Germany is due on Wednesday, headlining a light day for the European economic news.


At 2.00 am ET, Germany's GfK consumer confidence survey results are due. The forward-looking consumer confidence index is seen falling slightly to 10.0 in July from 10.1 in June.


In the meantime, Norway labor force survey data is due. The jobless rate is seen unchanged at 3.5 percent in April.


At 2.45 am ET, France's statistical office Insee publishes consumer confidence survey data. The index is expected to rise marginally to 100 in June from 99 in May.


At 4.00 am ET, unemployment data is due from Poland. The jobless rate is expected to fall to 5.4 percent in May from 5.6 percent in April.


At 5.00 am ET, Statistics Iceland releases consumer price inflation data for June.


At 5.15 am ET, Bank of England Governor Mark Carney, policymakers Jon Cunliffe, Silvana Tenreyro and Michael Saunders are set to answer questions at the Treasury Select Committee.


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Japan Retail Sales Rise 0.3% In May





Retail sales in Japan were up a seasonally adjusted 0.3 percent on month in May, the Ministry of Economy, Trade and Industry said on Thursday - shy of expectations for a gain of 0.6 percent following the downwardly revised 0.1 percent drop in April (originally flat).


On a yearly basis, retail sales were up 1.2 percent - in line with expectations and up from the downwardly revised 0.4 percent increase in the previous month (originally 0.5 percent).


Large retailer sales were down 0.5 percent on year, missing forecasts for a gain of 0.2 percent following the 1.8 percent drop a month earlier.


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New Zealand Consumer Sentiment Strengthens In June





New Zealand consumer confidence strengthened in June after falling a month ago, survey data from ANZ-Roy Morgan showed on Friday.


The consumer confidence index rose to 122.6 in June from 119.3 in May. The score rose to a bit above its historical average.


The current conditions index rose 2 points to 128, and the future conditions index gained 4 points to 119.


Consumers' perceptions of their current financial situation lifted 5 points to a net 15 percent assessing financially better off than a year ago. A net 29 percent of consumers expect to be better off financially this time next year, which was up 6 points. However, the proportion of households who think it's a good time to buy a major household item fell 3 points to 40 percent.


Perceptions regarding the next year's economic outlook lifted 5 points to 12 percent and the five-year outlook rose 2 points to +16 percent. Inflation expectations among consumers advanced to 4.0 percent in June from 3.6 percent in May.


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Japan Monetary Base Jumps 4.0% In June





The monetary base in Japan was up 4.0 percent on year in June, the Bank of Japan said on Tuesday - coming in at 512.991 trillion yen.


That follows the 3.6 percent increase in May.


Banknotes in circulation were up an annual 3.1 percent, while coins in circulation advanced 2.3 percent. Current account balances climbed 4.2 percent, including a 3.8 percent increase in reserve balances.


The adjusted monetary base jumped an annual 7.2 percent to 510.159 trillion yen.


For the second quarter of 2019, the monetary base was up 3.6 percent on year.


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China's Private Sector Expands Marginally In June





China's private sector expanded marginally in June despite contraction in manufacturing, survey data from IHS Markit showed Wednesday.


The Caixin composite output index fell to 50.6 in June from 51.5 in May. However, a score above 50 indicates expansion. The reading signaled the weakest growth since last October.


The services Purchasing Managers' Index dropped more-than-expected to 52.0 in June from 52.7 in the previous month. The expected reading was 52.6.


"The conflict between China and the U.S. impacted business confidence rather heavily," Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group said. "Although its impact on exports hasn't been fully reflected in the short-run, the longerterm situation doesn't look optimistic. Future government policies to stabilize economic growth are likely to focus on new types of infrastructure, consumption and high-quality manufacturing."


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The pressure of easy politics is too heavy; Swedish krona as an exception





More and more currencies fall under the pressure of the "dovish" tone of the world central banks, although the Swedish krona stands out against this background, having strengthened to a 2.5 month high against the euro after the local central bank announced that it plans to tighten the policy by early 2020. However, the focus remains on another currency - the pound - which fell on Tuesday along with the yields of British government bonds. The yield on 10-year securities fell below the main discount rate of the Bank of England for the first time since the 2008 crisis, after the markets interpreted the comments of the Bank of England CEO Mark Carney as dovish. The sterling lost 0.2%, updating its two-week low.





"The two main driving forces today are the yen, which is considered a safe haven, and it has returned to growth, and the pound, which continues to decline," said Colin Asher, senior economist at Mizuho. The yen rose by 0.23% against the dollar and is trading at 107.6 yen, as investors are more skeptical about the possibility of an early end to the trade war, especially given the comments of US President Donald Trump that any transaction should be in favor of the US. Currencies will continue to contain signs that more and more central banks are adjusting to easing monetary policy in order to combat a slowdown in economic growth. The dovish tone of central banks reduces profitability across the board.





The latest figures show that weakness in the manufacturing sector is beginning to spread to the service sector, it is alarming, and it gives the green light to central banks to soften policies. And so far only the Swedish central bank has adhered to a policy of tightening policy by the end of this year or the beginning of next year amid steady inflation and good economic prospects. The Swedish krona has updated a 2.5-month high against the euro and is growing against the dollar.


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Philippines Inflation Lowest Since 2017





Philippines inflation reached its lowest level in nearly two years in June, the Philippine Statistics Authority showed Friday.


Consumer price inflation eased to 2.7 percent from 3.2 percent in May. In the same period last year, the rate was 5.2 percent. Inflation was forecast to slow moderately to 2.8 percent.


The June inflation was the weakest since September 2017.


Excluding selected food and energy items, core inflation came in at 3.3 percent in June versus 3.5 percent a month ago.


Food prices advanced at a slower pace of 2.6 percent annually and education cost declined 4.5 percent. Meanwhile, higher rate were registered in the indices of health, recreation and culture, by 3.7 percent and 3.2 percent, respectively.


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China's Forex Reserves Increase In June





China's foreign exchange reserves increased marginally in June, data from the People's Bank of China showed on Monday.


Foreign exchange reserves rose by $18.2 billion to $3.119 trillion at the end of June from $3.101 trillion at the end of May. The forex reserves stayed slightly above the expected level of $3.110 trillion.


The increase was driven by currency conversion rates and higher international financial asset prices in June, the State Administration of Foreign Exchange said after the central bank released data.


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Japan M2 Money Stock Rises 2.3% On Year In June





The M2 money stock in Japan was up 2.3 percent on year in June, the Bank of Japan said on Tuesday - coming in at 1,029.6 trillion yen.


That was shy of expectations for a gain of 2.6 percent, which would have been unchanged from the May reading following a downward revision from 2.7 percent.


The M3 money stock was up an annual 2.0 percent to 1,362.4 trillion yen - again missing forecasts for 2.3 percent, which also would have been unchanged from the previous month.


The L money stock gained an annual 1.7 percent to 1,807.7 trillion yen, slowing from 1.8 percent a month earlier.


For the second quarter of 2019, M2 was up 2.5 percent on year, M3 rose 2.1 percent and L was up 1.8 percent.


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