What’s moving the market?
According to Nomura’s estimation, Singapore is expected to see food inflation double to 8.2% in the second half from 4.1% now, while India will likely see the highest print at 9.1% due to rising feedstock costs.
EU leaders have granted Ukraine the membership candidate status in a move that can be seen as a geopolitical response to Russia’s aggression on Europe’s eastern flank. The heads of states and government are gathering in Brussels for their usual pre-summer summit.
Germany triggered the ‘alarm stage’ of its emergency gas plan on Thursday in response to falling Russian supplies. The measure is the latest escalation in the Russian war that has exposed the bloc’s dependence on Russian gas supplies and sparked a frantic search for alternative energy sources.
Federal Reserve Chair Jerome Powell called his commitment to curbing inflation ‘unconditional’ even as Democrats warned of recession risk. Powell told the House Financial Services Committee that the US labor market was “sort of unsustainably hot and we’re very far from our inflation target.” He repeated the Fed was still hoping to achieve a soft landing even though it is going to be tough.