Trump Withdraws US from Paris Agreement
Trump will withdraw from the Paris agreement on climate change. This will kick-start a three-year withdrawal process to leave the agreement. Or Trump could decide to renege on the underlying United Nations treaty which would speed up the process.
Euro Data
Euro inflation fell to 1.4% in May. The figure came in slightly below economist’s predictions of 1.5% and was the weakest reading this year. Core inflation – inflation excluding food, energy, alcohol, and tobacco – fell to 0.9%, again below expectations of 1%.
The data is supportive of Mario Draghi’s latest dovish comments which called for a continuation of supportive monetary policy i.e. low interest rates.
China Picks Up
Manufacturing data showed that China is growing, despite concerns over the credit crack down. The National Bureau of Statistic’s official Purchasing Managers’ Index (PMI) came in at 51.2 more than the 51.0 predicted.