Stay informed with todayâs key macroeconomic and market highlights from the U.S., Japan, Germany, and global equity markets.
đșđž U.S. Manufacturing Remains in Contraction
The Philadelphia Fed Manufacturing Index held steady at -4.0 in June 2025, unchanged from May and below market expectations of -1. This marks another month of subdued regional manufacturing activity.
Key Highlights:
- New orders stayed positive but weakened.
- Shipments improved and turned positive.
- Employment fell sharply, reaching its lowest level since May 2020, signaling a drop in factory jobs.
- Price pressures eased slightly but remain historically high.
- Outlook: Business optimism is waning, with fewer firms expecting growth in the next six months.
đ Takeaway: Continued weakness in manufacturing could influence the Fedâs policy stance going forward.
đŻđ” Japan Inflation Eases, Core CPI Surges
Japanâs annual inflation rate fell slightly to 3.5% in May 2025, down from 3.6% in the previous two months. However, core inflation (excluding fresh food and energy) rose to 3.7%, the highest in over two years.
Breakdown:
- Declines in prices for clothing, healthcare, and household goods.
- Housing, recreation, and communications saw rising costs.
- Rice prices skyrocketed over 100% year-over-year, showing limited impact from government price controls.
đ Takeaway: Inflation remains a concern ahead of Japan’s summer elections, adding complexity to BoJ policy decisions.
đ©đȘ German Producer Prices Drop Sharply
Germanyâs Producer Price Index (PPI) fell 1.2% year-over-year in May 2025, marking the third straight month of decline and the sharpest drop since September 2024.
Details:
- Energy prices fell sharply:
- Electricity: -8.1%
- Natural gas: -7.1%
- Heating oil: -10.2%
- Excluding energy, producer prices rose 1.3% YoY.
- Monthly PPI dropped 0.2%, better than the expected 0.3% decline.
đ Takeaway: Cooling input prices support the ECBâs disinflation narrative but wonât remove all pressure from sticky core inflation.
đ U.S. Markets Set for a Lower Open
After Wednesdayâs Juneteenth holiday, U.S. stock futures point to a slightly lower open as investors react to:
- Ongoing geopolitical tensions in the Middle East.
- President Trumpâs delayed decision on Iran, while strikes from Israel continue.
- Oil prices retreat, weighing on energy stocks.
- CarMax expected to open 10%+ higher after strong earnings.
- Triple Witching Day could increase market volatility.
đ Takeaway: Risk appetite remains fragile. Expect choppy trading as geopolitical uncertainty and technical factors weigh on sentiment.
đ Final Thoughts
Economic data continues to paint a mixed global pictureâslowing growth, sticky inflation, and rising geopolitical risks. Investors should brace for near-term volatility and monitor central bank signals closely.

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