Daily Market Insight

• Japan's service activity maintains firm pace as demand picks up • South Korea consumer inflation hits 21-month low • Hong Kong May retail sales rise 18.4%, sees support from local consumption • Spread between 2- and 10-year Treasuries at deepest inversion since ‘81

• US Manufacturing Activity Shrinks by Most in Three Years • UK year-ahead inflation expectations rise to 5% • Improving Japan business mood signals steady economic recovery • Dollar little changed after ISM data, yen below 145 threshold

• US consumer spending hits speed bump; inflation picture mixed • Euro zone inflation falls again in June as energy prices tumble • Chinese manufacturing activity grows at slower pace in June • Yen tentative, dollar soft as traders weigh Fed rate hike path

• US weekly jobless claims post biggest drop in 20 months as economy shows stamina • Tokyo CPI inflation grows less than expected in June, remains sticky • Chinese manufacturing PMI shrinks for third straight month in June • Dollar index hits two-week high as data boosts Fed hike expectations

• US goods trade deficit narrows; retail inventories rise • Australian retail sales beat expectations, hit 6-month high in May • China's industrial profits tumble, deepening economic gloom • Dollar strengthens after ECB conference, yen stays soft

• US consumer confidence races to 17-month high; housing market regaining strength • China’s deepening slide in industrial profits adds to economic gloom • Thai exports drop less than expected in May, seen improving in second half • Japanese intervention in focus as yen heads to 145 level

• UK retail sales fall for second month in June • Drop in German business morale points to longer recession • S&P cuts China GDP forecast as calls for stimulus intensify • Dollar edges off 15-month high vs rouble as Russia eyed

• US business activity growth slows in June, but services keep humming along • UK economy stumbles but price pressures remain high • Singapore May core inflation rises 4.7% y/y, matches forecast • Dollar higher on safety bid as data spurs growth worries

• US jobless claims hold at 20-month high, existing home sales tick up in May • Bank of England hikes rates to 5% in surprise move to tackle stubborn inflation • Japan’s inflation stays above BOJ target, key gauge hits 42-year high • Dollar up on risk aversion; sterling, Swiss franc slip despite rate hikes

• UK's stubborn inflation fails to fall, turning up heat on BoE • German recession will be sharper than expected • Japan big manufacturers' sentiment positive for 3rd consecutive month • Dollar dips as Powell testimony disappoints hawks