Real Vision: Finance & Investing

Eurozone Inflation Falls, China’s PMI Slumps, and OECD Cuts Forecasts: PALvatar Market Recap, June 3 2025

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Jun 3, 2025
In this market update, a significant drop in Eurozone inflation takes center stage alongside concerning contraction in China's manufacturing sector. The OECD's slashed forecasts raise global growth worries, while political instability in the Netherlands, Poland, and South Korea adds another layer of complexity. Meanwhile, mixed signals emerge from U.S. manufacturing data, showcasing the ripple effects of tariffs. This briefing offers essential macro insights that every investor should not miss.
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INSIGHT

Eurozone Inflation Drops Below Target

  • Eurozone inflation fell below the ECB's 2% target for the first time since September 2024.
  • This disinflationary trend supports market expectations of an interest rate cut soon.
INSIGHT

Switzerland Faces Deflation

  • Switzerland entered deflation in May, with inflation at minus 0.1%, first time in 4 years.
  • This fuels expectations of sub-zero interest rates to boost prices and control currency strength.
INSIGHT

China's Manufacturing Contracts

  • China's manufacturing PMI contracted sharply to 48.3 in May, lowest in nearly three years.
  • Declining new orders amid trade tensions with the US are the main drag on growth.
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