Morning Economic Report 6-2-25

Economy update Weekend developments have resulted in a flight out of risk assets. The US President has threatened to double tariffs on US steel and aluminium imports starting June 4. Factory activity in the euro zone stabilized in May, its index rose from 49.0 to 49.4, still below the crucial 50 mark. In Asia, the impact of US tariffs on manufacturing felt more intensely as both the Japanese and South Korean sectors contracted, whilst factories are also struggling in China. Stocks are edging lower and so is the dollar, whilst bond yields are climbing. Not surprisingly, gold sees good demand once again.