Markets Remain Cautious Amidst Inflation Battles and Football Fever

European and global markets are in focus following Ollie Watkins' critical goal sending England into the European Championship final. Amidst this excitement, the fight against inflation continues with the U.S. inflation report and Central Bank reactions closely watched. Stock markets are hitting record highs, with key economic data and earnings scheduled today.

European and global markets are keenly watching developments after Ollie Watkins' stoppage-time goal sent England into the European Championship final against Spain.

The pursuit of England's first major trophy on foreign soil isn't over, and the battle against inflation also continues with critical U.S. numbers due. Stock markets have reached record heights, led by notable tech gains in anticipation of autumn rate cuts.

Economists predict U.S. June headline CPI to slow to 3.1%, with core CPI holding steady month-on-month at 0.2%. Should these forecasts hold true, it is expected to solidify the probability of a rate cut by the Federal Reserve in September.

However, unexpected inflation spikes could alter projections and affect asset prices, potentially weakening the yen further. Despite this, the yen remains on the weaker side of 161 per dollar, and Tokyo and Taipei markets marked record highs alongside New York.

The Nasdaq has seen an increase of over 5% this month. The Bank of Korea held rates as anticipated, dropping inflation risk warnings. Meanwhile, the sterling hit a four-month high as the Bank of England's economist Huw Pill did not indicate an August rate cut as expected.

Key economic events today include Final German CPI, UK monthly GDP, and U.S. CPI, along with earnings reports from Delta Airlines and PepsiCo, and speeches from Fed officials Musalem and Bostic.