Australian Morning Focus

The ECB raised interest rates by 25bp as markets reacted to volatile Middle East geopolitical headlines. Risk appetite improved late in the session as rhetoric shifted toward a potential peace deal.

Key Takeaways

• 1.The ECB hiked its benchmark deposit facility rate to 2.25%, with markets pricing a 60% chance of a follow-up hike in July.
• 2.Geopolitical tension in the Middle East saw high volatility; however, rhetoric shifted toward a potential peace deal, cooling energy prices.
• 3.US PPI headline inflation rose 1.1% m/m in May, though core PPI was softer at 0.4%.

Table of Contents

• Highlights
• Today (AEST)
• Global markets overview
• Data/event pulse
• Market at 6:45am today
• Key data releases
• What's ahead today
• Commodities
• Important Notice