Foreign exchange market sentiment indicators continued to decline, recording their biggest intraday drop in two weeks.

Swiss leader talks with Ukrainian President Zelensky about peace conference.

Switzerland will host a high-level Ukraine peace summit on June 15-16, which it says aims to create a concrete roadmap for Russia’s involvement in the peace process.

Federal Reserve Board Governor Bowman did not comment on monetary policy.

The pan-European Stoxx 600 index extended losses to 0.5%.

World Trade Organization: Regional conflicts, geopolitical tensions and economic policy uncertainty may limit the extent of the rebound in global trade.

WTO Director-General Ngozi Okonjo-Iweala: Thanks to resilient supply chains and a solid multilateral trading framework, we are making progress in the recovery of global trade, which is essential for improving livelihoods and welfare. We must mitigate risks such as geopolitical conflict and trade fragmentation to maintain economic growth and stability.

World Trade Organization: The recovery in demand for tradable goods in 2024 is already evident, with the new export order index suggesting that trade conditions have improved at the beginning of this year.

World Trade Organization: Economists expect global trade in goods to gradually recover this year: Inflationary pressures are expected to ease this year, allowing real incomes to grow again and boost consumption of manufactured goods, especially in developed economies.

Market news: U.S. exporters sold 254,000 tons of soybeans to unknown buyers.

European crude oil and petroleum product inventories reached 1.015 billion barrels in March, up 3.4% from February and 1.3% year-on-year.

World Trade Organization: Global trade in goods is estimated to fall by 1.2% in 2023.

World Trade Organization: Global trade in goods is expected to grow by 3.3% in 2025.

[Institution: Slow progress in fighting inflation, the dollar may continue to rise] Michael Brown, a market analyst at Pepperstone, said that the CPI report was worrying, with the overall CPI higher than expected for the third time this year, while core inflation remained unchanged on both a month-on-month and year-on-year basis. Progress in fighting inflation is still significantly slower than FOMC policymakers would like to see. Although there are two more CPI reports and two more PCE reports before the June interest rate meeting, these data clearly tilt the balance of risks toward a delayed start of the easing cycle and fewer rate cuts, with overnight index swaps (OIS) now suggesting only a 50 basis point rate cut this year. These data are likely to keep the dollar rising as the risks to the FOMC outlook increasingly lean toward hawks, while G10 peers are expected to start their easing cycle as early as June.

France expects its fiscal deficit to be 2.9% in 2027, compared with a previous forecast of 2.7%.

France expects its fiscal deficit to be 5.1% in 2024 and 4.1% in 2025.