The Bank of Japan raised its policy rate to 1% — the highest level since 1995 — marking a decisive shift as global central banks press against resurgent inflation.
China’s latest data painted a mixed but resilient picture. Retail sales rose 1.4% through the first five months of the year but fell 0.6% year‑on‑year in May. Value‑added industrial output expanded 4.5% in May, and the unemployment rate unexpectedly improved to 5.1%, the statistics bureau chief said, adding Beijing has sufficient policy tools to sustain steady economic expansion.
Policy and corporate moves were underway in Europe and France: Prime Minister Lecornu unveiled plans for an additional €655 million in AI investment as governments jockey to boost technology capacity.
Risk appetite extended into emerging markets, with the MSCI Emerging Markets index rising for a third day, led by technology names and hovering near record highs.
Confidence in Germany improved as hopes for a resolution of the Iran conflict bolstered sentiment. The ZEW expectations index jumped to 10.5 in June from -10.2 in May. Separately, Germany’s finance agency rejected UniCredit’s bid for Commerzbank, saying the offer premium was insufficient despite the state’s 12% stake.
Market moves were constructive: European equities gained about 0.8%, while Japan and mainland China traded flat. US futures pointed to marginal gains at the open. Oil continued to ease on easing geopolitical risk, with Brent crude down roughly 2.5% to about $81 a barrel.
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