• The United States (US) Fed kept its policy rates unchanged in June, but lifted the outlook on policy rate levels
  
• Manufacturing activity in China contracted for the second straight month in May
• Brent crude oil prices fell 10% on-month
  

First-quarter growth in key advanced economies was mixed, with the economy of the euro area (EA) contracting on-quarter (-0.1%), while US growth slowed down to an annualized 1.3%, compared with 2.6% in the previous quarter. On the other hand, Japan's gross domestic product (GDP) growth accelerated to 2.7% in the first quarter compared to 0.4% in the last quarter of 2022. China is showing an uneven recovery. Manufacturing activity contracted in China for the second consecutive month, while inflation remained low (0.2%) in May, indicating sluggish demand.

Inflation cooled in the US and euro zone in May, but remains above central bank targets, signaling that further rate hikes can be expected this year.