KN Market View 2024-06-23

#KNMarketView

Geopolitical instability has been observed in different regions, with USDMXN -1.90% and USDZAR -2.21% recovering after recent political developments. In Europe, equity markets also rebounded, led by Italy +1.97% and France +1.67%, following the previous week's turmoil after President Emmanuel Macron's dissolution of the National Assembly and call for snap elections link.

In Russia, MOEX -2.93% continued its negative trend, impacted by new US sanctions that have forced an immediate suspension of trading in dollars and euros on its leading financial marketplace link.

Regarding economic data, retail sales MoM came above consensus in the UK 2.9% vs 1.5% and Mexico 0.5% vs -0.3%.

Building permits in the US fell by 3.8% to a seasonally adjusted annual rate of 1.386mn in May 2024, the lowest since June 2020 and below market expectations of 1.45mn link.

This week, the focus will be on inflation rates for Europe, Canada, Indonesia, South Korea and Mexico, the US GDP growth rate and durable goods orders, and China caixin manufacturing PMI. Consumer and business confidence will be released for major economies.

The following companies will release their quarterly earnings reports: FedEx, Micron Technology, Paychex, General Mills, and Nike.