Market Focus: Economic Activities and Geopolitical Tensions

Today’s economic calendar in Europe presents no major events, with only low-tier data like Spanish employment change and Italian retail sales to watch. These figures are unlikely to impact the ECB's decisions; thus, market reaction is expected to be muted. The attention of investors remains focused on developments between the U.S. and Iran. Risk sentiment has maintained a positive momentum following Trump’s cancellation of planned military strikes over the weekend. Meanwhile, the Iranian side continues to deny talks with the US and claims there is no deal, maintaining that the Strait of Hormuz remains closed. In the American session, the agenda includes the release of June's US Job Openings report, which is expected at 7.453 million compared to the previous month’s 7.594 million. Although this data will not change anything for the Fed given their focus on inflation, it may influence perceptions about the strength of the U.S. labor market. The American labor market has been gradually strengthening since the beginning of the year, with uncertainties from the 2025 tariffs fading and Federal Reserve rate cuts boosting business sentiment.