Morning Economic Report 6-5-25

The recent spate of disheartening economic data (factory activity, US service sector contraction, tepid labour market) is being ignored as stocks are stable and bond yields are on the descent. Trade talks between the US and its partners are likely to intensify in the near future. Producer prices registered a year-on-year increase of 0.7% in the eurozone. The ECB will most probably lower borrowing costs by 0.25% this afternoon, whilst Trump re-applied pressure on the Fed to cut rates. European shares are up but the dollar is ominously sluggish.