Polls declared former President Trump the winner immediately after the US presidential debate. Consumer spending figures follow negative revisions within first quarter GDP, UOB strategist Paul Donovan notes. Europe to provide preliminary June consumer price data.

Trump wins the debate, European data ahead

“Polls immediately after the US presidential debate declared former President Trump the winner. This invites increased investor scrutiny of Trump’s policies, especially around trade. The economic consequences of tariffs are relatively obvious, but there is uncertainty about how many campaign pledges will translate into policy action.”

“The cold economic realities offer US May consumer spending and income data, and the price deflator. While price data is the focus, consumer spending figures follow negative revisions within first quarter GDP. The monthly change in the consumer spending deflator should be benign, and the main concern about US inflation amongst economists is why Federal Reserve Chair Powell has seemingly not noticed rising real interest rates.”

“Japan’s Tokyo area consumer price inflation rose slightly more than expected. Recent increases keep the focus on Bank of Japan (BoJ) policy. France and Spain both offer preliminary June consumer price data. The UK revised up its first quarter GDP by a small amount, but small changes in abstract ideas has little relevance to people living in the real world.