New Zealand Morning Focus

Global markets were volatile overnight as geopolitical headlines regarding Iran fluctuated, eventually rebounding on peace deal hopes. The ECB implemented a 25bp rate hike as global investors continue to assess inflationary pressures.

Key Takeaways

• 1.The ECB hiked benchmark rates by 25bp to 2.25%, with the market pricing a 60% chance of a further hike in July.
• 2.Geopolitical volatility persists following President Trump's mixed signaling regarding potential military action in Iran.
• 3.US PPI data showed stronger-than-expected headline figures, while core measures revealed softness in trade services.

Table of Contents

• Highlights
• Data and events today
• Financial markets
• Global markets overview
• Key data and events
• Key themes and views
• Important Notice