UK politics and US CPI amongst market movers today – Danske Bank

Danske Bank analysts point out that in the UK, the House of Commons will vote on a proposal to give MPs control of parliamentary business on 25 June as a way to block the new prime minister, to simply let the UK crash out of the EU without a deal.

Key Quotes

“It would require some Conservative rebels to vote with the opposition and it may fail this time, but shows the MPs will not let the prime minister take full control of the Brexit process.”

“In the euro area, we have a lot of ECB speeches this morning, most notably ECB President Draghi at 10:15 CEST. If he or others want to correct last week's market reaction to the June ECB meeting there will be ample opportunities today.”

“In the US, we expect CPI core rose +0.2% m/m in May, implying an unchanged core inflation rate of 2.1% y/y, in line with expectations. Subdued underlying inflation pressure is one reason why we expect the Fed to ease monetary policy slightly in H2 19.”