• Wall Street was closed on Monday, May 27, for Memorial Day. Meanwhile, global stock indexes closed higher: GDAX rose by +0.44%, HSI increased by +1.17%, and SSE closed up by +1.14%.
• The market will closely watch the Consumer Confidence report today, expected to remain steady. Thursday's pending home sales data and Friday's Core PCE report could significantly impact market trends and set the tone until the next FOMC meeting.
• In Euro, the Ifo Business Climate indicator for Germany was steady at 89.3 in May 2024, unchanged from the previous month, and below the forecast of 90.4. Meanwhile, business expectations improved to 90.4 from a downwardly revised 89.7, compared the expected 90.9.
• ECB governing council member Olli Rehn, in a Monday speech, emphasized the continued decline in euro area inflation, hinting at a possible interest rate cut next week. April's inflation held steady at 2.4%, marking seven months below 3%.
• In Asia, Japan's 10-year JGB yield climbed above 1%, marking a 12-year high, after BOJ Governor Kazuo Ueda spoke on re-anchoring inflation expectations and the difficulty of estimating the neutral interest rate. Japanese yields have been pressured as the CB ended its negative rates policy and yield curve control program in March.
• Global bond yields were mixed on Friday, the German bund yield declined by -3.60 bps to 2.55%, while the 10-yr China GB yield edged down by -0.3 bps to 2.31%. The Japanese 10-yr JGB yield surged by +1.01 bps to 2.90%.
