Daily Summary, June 10

Good Morning, Faithful Readers!

Welcome to your daily pulse on markets and macroeconomics, with a sharp focus on Europe and essential updates from around the globe.

🇪🇺 Europe at a Glance

  1. Eurozone equities take a breather
    The STOXX Europe 600 eased slightly to around 553.3, ending a four‑day rally, as investors awaited news from U.S.–China trade talks in London. Utilities were among the weakest sectors after Eurozone bond yields.

  2. ECB delivers another rate cut
    On June 5, the European Central Bank reduced its deposit rate by 25 bps to 2.00%. Officials emphasized that financial conditions remain delicate and future decisions will be data-driven.

  3. Spain shines amid neutrality
    BlackRock notes that Spain is the only major Euro equity market with a positive tactical bias, supported by strong valuations and exposure to sectors like utilities and infrastructure .

  4. Spain to boost change-of-tenants measures
    Ireland plans to exempt sitting tenants from rent cap reforms. Meanwhile, Spain is being eyed favorably by investors given its broader economic.

🌍 Global Market Snapshot

  • U.S. stocks on record-high run
    The MSCI ACWI hit a fresh high, propelled by optimism over commodity tariffs and potential rate adjustments. The S&P 500 has rebounded firmly on the year.

  • Tech-sector leadership
    U.S. chipmakers, including NVIDIA and Intel, have rallied, helping the Nasdaq flip positive for 2025 amid expectations of easing tariffs and upbeat earnings.

  • Growth in infrastructure & private credit
    BlackRock sees strong mid-term opportunities in infrastructure equities and private credit, while preferring UK gilts among fixed-income and favouring EM & Japan in equities.

📅 Key Upcoming Events

  • PMI & GDP data: Global manufacturing and service PMIs due early this week, with U.K. GDP and labor market updates mid-week.

  • U.S. inflation: Wednesday brings May CPI data—watch for clues following strong pricing from PMI surveys.

  • Trade balance & UK jobs: Later this week brings U.K. trade and employment data, plus eurozone industrial figures.

🔍 Big Picture Insight

  • Tariff tensions fade, not vanish: U.S.–China trade discussions in London still dominate sentiment. Progress could lift cyclical Europe plays—slippage could pause the current rebound.

  • Diverging inflation dynamics: Eurozone inflation is easing toward 2%; in contrast, the U.S. still sees upward price pressure that might justify continued Fed firmness .

  • Valuations suggest room to run: Despite global uncertainties, current valuations abroad remain attractive, particularly in Europe and Japan as central banks signal patience.

💡 What to Watch Today

  • Any developments in U.S.–China trade talks

  • Initial PMI flash readings (May)

  • ECB commentary—focus on guidance in post-rate-cut press conference

  • US CPI print—might shape market confidence and central bank expectations

Summary

  • Europe: markets down slightly after recent gains; ECB likely done with cuts for now

  • Globally: risk appetite strong; cyclical/tech names leading

  • Macro themes: tariff resolution, inflation divergence, central bank tilts