Synopsis:

Morgan Stanley expects a slight improvement in Germany’s June IFO business climate survey and mixed trends in US consumer confidence, with sentiment recovering but labor market views weakening.

Key Points:

• US Consumer Confidence (June):
  Expected to reflect a rebound from April-May lows, consistent with June’s University of Michigan sentiment improvement.
  
  

• Germany IFO Business Climate (June):
  MS forecasts a modest rise to 87.8 from 87.5 in May, suggesting gradual improvement in sentiment despite weak underlying activity.

Conclusion:

The US confidence rebound remains fragile as consumers grow less optimistic about job prospects. In Germany, sentiment may be stabilizing, but the economy still faces structural headwinds. Neither release is expected to shift market direction materially on its own