NEWSFEED HIGHLIGHTS
- Composite PMI: 50.7 (prev 49.5)
3 July 2026
Summary
- The ECB is reportedly considering raising the minimum reserve requirement from 1% to 2%.
- This seems to be driven by a cost-reduction exercise. The change would roughly offset the additional interest costs of the June rate hike.
- Implications for the policy stance are probably minimal. But increasing the reserve requirement would accelerate the switch from abundant to ample liquidity by 4 to 5 months.
- This could see a further cheapening of repo rates, and it may put further narrowing pressure on short-dated swap spreads.
- 1 Year CPI Expectations: 3.3% (est 3.6% prev 3.7%)
- Composite PMI: 49.3 (est 49.4; prev 49.4)
- Composite PMI: 50.0 (est 49.5; prev 49.5)
FEATURED STORIES
Data from the Bureau of Labor Statistics is expected to show the US jobs market continued to expand in June, albeit at a slower pace than last month, when leisure and hospitality helped push headline employment well above consensus levels.
The latest consensus forecast puts the headline payroll figure at 115,000, down from the 172,000 surprise in May. The unemployment rate is expected to remain at 4.3%, while economists estimate the...
The rate of the slowdown in the Eurozone’s headline consumer price growth surprised even the most ardent dovish forecasters on Wednesday.
The preliminary reading from the EU statistics office, Eurostat, showed that the annual rate printed 2.8% in June, two tenths below forecasts and cooler than the 3.2% seen last month.
(Continue Reading - LS)
Headline consumer price growth in the Eurozone has likely slowed from its highest mark since September 2023, according to economists’ expectations for the first data on inflation to be released since the European Central Bank raised interest rates earlier this month.
An economists’ poll predicted that the annual Eurozone headline inflation rate in June slid to 3.0% from 3.2% in May. This would still leave it well above the ECB’s target of 2.0% over the medium...
After-market Wednesday should provide some insight into the US Semiconductor industry as Micron reports its Q3 earnings, Qualcomm hold their Investor Day and Nvidia has its Annual Shareholder Meeting.
(Continue Reading - LS)
The Makerfield by-election takes place this Thursday, with the result expected in the early hours of Friday morning. The contest could prove one of the most consequential in recent British political history.
Josh Simons stepped down to give Andy Burnham a route back to Parliament after leaving Westminster in 2016. Should Burnham win, he is widely expected to emerge as a potential challenger to Prime Minister Keir Starmer.
Introducing LiveSquawk Market Talk Podcast
Join market veterans for deep-dive analysis ahead of major financial events that move markets.
From Non-Farm Payrolls to central bank decisions, our expert guests break down market positioning, potential trading opportunities, and global implications.
Get the critical insights you need to stay ahead of market-moving news. Brought to you by LiveSquawk, the trusted source for real-time financial news covering 120+ countries and all major asset classes.
