Markets traded cautiously as investors awaited news regarding trade negotiations between the US and China. The World
Bank cut its global economic growth forecast, pointing to uncertainty brought by trade war as the main cause. In today's
session, financial markets will focus on US CPI data for May.
Against this backdrop, euro area sovereign yields fell, with peripheral risk premia barely changed. In the US, sovereign bond
yields were little changed ahead of CPI data to be released today. In stock markets, US equities registered gains, as investors
expected a positive outcome from US China talks, while euro area equities were mixed, with PSI leading the gains.
In currency markets, the dollar strengthened against other main currencies, supported by positive comments from US
officials on trade talks, while the EUR/USD was little changed. In commodities, both Brent oil prices and European gas
reference prices fell, as investors await more news that may reduce trade uncertainty.