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This week features a mix of key economic data releases and significant events, including China’s manufacturing PMI hitting a three-year high, while markets will closely watch eurozone and US PMI data, the ECB forum, Euro Finance Summit, and US job reports, among other developments.

U.S. stocks have reached record highs, driven by tech sector gains due to strong AI-driven performance and improving profit margins, leading BlackRock to remain optimistic about U.S. stocks.

Key data releases, including the US GDP and PCE core on Thursday and the PCE deflator on Friday, are awaited this week, alongside significant central bank communications and the BoE’s financial stability report.

BlackRock investment leaders gathered on June 6-7 for their semiannual Outlook Forum, where they concluded that interest rates are likely to remain elevated due to persistent inflation. They also shifted their view on artificial intelligence, now believing that its buildout could be inflationary in the near term, with a select group of AI winners expected to drive returns over the next six to twelve months.

In Epic Investment Partner’s view, this week’s economic landscape is marked by mixed signals from China and a series of critical data releases from the US and Eurozone. As markets digest last week’s developments, including the Fed’s cautious stance on rate cuts and MSCI’s decision affecting European bonds, investors brace for a busy week ahead.

More than half the world’s population will vote in 2024, and BlackRock is monitoring the investment implications. They believe that governments and candidates have limited solutions for key financial issues affecting voters. As a result, BlackRock remains overweight on U.S. stocks ahead of the U.S. election but remains cautious on long-term U.S. Treasuries.