US Trade Deficit Plunges 16% in June to $60.2B – Lowest Since 2023!
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Core inflation, excluding fresh food but including energy, rose 1.4% year-on-year, down from 1.8% in March and below the 1.7% forecast, driven by government subsidies on fuel and school tuition. This marks the third straight month below the BOJ's 2% target—the slowest since March 2022—and follows the bank's April rate hike to 0.75%, its highest since 1995. Free school lunches played a role, but a slowing was widespread. Full impact of War yet to be felt but the deceleration in inflation should keep BoJ gradual in hiking. Markets saw a milder yen and bond support, though analysts predict a rebound as subsidies fade and Middle East tensions lift fuel costs. Source: Bloomberg
Car retail sales plunged -15% YoY in April, the steepest decline since mid-2022, according to China's National Bureau of Statistics. Home appliance and furniture purchases fell at a double-digit pace, while gold, silver, and jewelry sales collapsed -21% YoY. Overall retail sales rose just +0.2% YoY in April, the weakest reading since December 2022, while fixed-asset investment fell -1.6% in the first 4 months of 2026, returning to contraction. The April data suggest GDP could expand as little as +4.1% YoY in Q2 2026, which would represent a significant miss of Beijing's official growth target of 4.5% to 5% China's economy is struggling. Source: Global Markets Investor

