Daily digest market movers: Data-driven Thursday

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  • At 12:30 GMT, nearly all important data points will be released:
    • US Gross Domestic Product for the third quarter:
      • Headline GDP is expected to grow at an annualized rate of 1.4%, more than the 1.3% previously estimated.
      • GDP Price Index should remain stable at 3.1%.
      • The Headline Personal Consumption Expenditure  Price index is seen unchanged at 3.3%, while the core reading is also seen stable at 3.6%.
    • US Durable Goods for May:
      • Headline Durable Goods orders are expected to fall by a marginal 0.1%, swinging from a 0.6% rise a month earlier. to -0.1%.
      • Durable Goods without Cars and Transportation are expected to grow by 0.2%, slower than the 0.4% increase in April.
    • Weekly Jobless Claims for the week ending June 14th:
      • Initial Jobless Claims are expected to decline slightly to 236,000 from 238,000.
      • Continuing Claims are seen heading to 1,820,000 from 1,828,000.
    • Pending Home Sales for May, due at 14:00 GMT, should jump out of contraction, from -7.7% to 2.5%.
  • At 15:00 GMT, the Kansas Fed Manufacturing Activity Index for June will be released. The previous print was at -1. 
  • Equities are struggling yet again. In Asia, all major indices are set to close in deep red numbers, while US futures are down by less than 0.50%. European equities are trading broadly flat. 
  • The CME Fedwatch Tool is broadly backing a rate cut in September despite recent comments from Fed officials. The odds now stand at 56.3% for a 25-basis-point cut. A rate pause stands at a 37.7% chance, while a 50-basis-point rate cut has a slim 6.0% possibility.
  • The US 10-year benchmark rate trades near the weekly high at 4.33%

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