😴 Wakey-wakey, China

Europe smacked down the rate-hike button | China's rate cuts might just be the very beginning | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 16th in 3:13 minutes. 📣 This is your chance to contribute to and access what could become the industry's biggest report on how individual investors are trading today. [Fill in the three-minute survey]( and you'll get a copy of the results, plus the chance to win a pair of AirPods Pro and limited-edition Finimize swag. [Take the quick survey here]( Today's big stories - The ECB plowed on with rate hikes, determined to bring inflation to heel - Here’s where the pros are investing now, and where they’re not – [Read Now]( - China’s central bank kept trying to breathe life into the out-of-puff Red Dragon Not Just Hot Air [Not Just Hot Air] What’s going on here? The European Central Bank (ECB) nudged interest rates up again on [Thursday]( in a bid to stick a sharp pin in the region’s rising prices. What does this mean? The Federal Reserve (the Fed) might’ve stepped away from the big red interest-rate-hike button, but the ECB just gave its own version a little push, raising its main rate by a quarter of a percent to 3.5%. That leaves Europe’s rate a fair distance from where the Fed decided to come up for air, even though recent data showed prices in the region are still rising faster than in the US. Still, while the Fed has to look after employment and inflation, the ECB just has one official goal: keep prices in check. So even though it recently pulled its economic outlook downward, it’s unlikely to box off that rate-bulking button anytime soon. Why should I care? For markets: Limber up. The ECB has a lot of countries to keep track of – and boy, they sure flip-flop. Just three months ago, Germany was tipped to have dodged a [recession](, but now Europe’s biggest economy is on the slide. And those topsy-turvy trends extend outside of the eurozone too. Inflation in the UK is far from the 2% the Bank of England expected to see by now, but the country’s economy – once “the sick man of Europe” – has suddenly got its strength back. Investors, heed the warning: stay flexible with your own forecasts. Zooming out: An endless summer. Europeans praise warmer weather every year, but there’s more than sunny skies to celebrate this time. The war-induced energy shortage meant household bills had bite during the winter, but now Europe’s boasting a half-full [gas]( reserve – well above the 34% five-year average. What’s more, it’s on track to meet its 90% goal before next winter, which should mean today’s lower gas prices – a chunky component of inflation data – might stay tame. You might also like: [The “quiet credit crunch” may be underway.]( Copy to share story: [/not-just-hot-air]( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Not Just Hot Air&utm_campaign=daily-global-16-06-2023&utm_source=email) Analyst Take The Two Areas Where Professional Investors Are Finding Value [The Two Areas Where Professional Investors Are Finding Value]( Let’s be honest, there’s nothing better than [getting a glimpse]( of what other folks are doing with their portfolios. And if they happen to be [professional fund managers](, well, all the better. So when [Bank of America]( releases its monthly fund manager survey, revealing what 285 industry pros – with a combined $764 billion invested – are buying, you need to take a peek. For starters, the latest survey shows that the pros are [wild about two investments]( right now: Big Tech and investment-grade bonds. But that’s just the very surface. That’s today’s Insight: [here’s where the pros are investing now – and where they’re not.]( [Read or listen to the Insight here]( SPONSORED BY IG The tips you need to know before trading stocks The more experienced a stock trader is, the better chance they have at sidestepping pitfalls. But there's a guide: if you’re keen to trade stocks, [IG’s guide]( outlines all the [tips and tricks]( you’ll need to know while you build up your position. For starters, you’ll need to [do hefty research on any stock]( you have your eye on, so you can [predict future movements]( and understand what’s behind any positive or negative news. Next, find out how many stocks are available, because that’ll determine their price. That’s [“the law of scarcity”](: the rarer shares are, the more folk are happy to pay for them. Then [trade small amounts as regularly as you can](, limiting the amount you put in, to minimize the impact of short-term fluctuations. Stay logical, and only go bigger when you’re more experienced. Check out IG’s guide, and [find out what else is behind trading success](. Disclaimer75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Not-So-Power Nap [Not-So-Power Nap] What’s going on here? China’s central bank cut a major interest rate on [Thursday](, an effort to pull its worn-out economy out from under the covers. What does this mean? China’s economy has been hitting the snooze button this year, refusing to seize the day and produce the 5% pick-up the government’s been hoping for. Just look at the latest data: retail sales and industrial production were too sluggish to meet expectations in May, with the latter creeping up just 3.5% on last year’s locked-down economy. Frustrated, the central bank’s been cutting rates to get spending up and going, this time chopping its main medium-term interest rate from 2.75% to 2.65%. And while that might not sound like much, three rate cuts in a week are the equivalent of splashing cold water on the face of a stubborn sleeper. Why should I care? Zooming out: We used to hang out. The world’s biggest economies were buddies for decades after China entered the World Trade Organization, with the clique’s fortunes moving pretty much in sync. But then the pandemic’s lockdowns, backed-up supply chains, and political tensions reminded them that you can’t rely on anyone, and countries like the US, UK, and China became increasingly focused on themselves. That’s not the worst deal for active investors: it means individual economies perform more independently, and for every floundering economy, there’s usually one flourishing. For markets: Decent exposure. Plenty of colossal US firms make a lot of money from their Chinese businesses – well, at least they used to. Now that China’s sagging economy is weighing on the likes of Nike and Estée Lauder, their share prices are reflecting that extra burden. But China’s government isn’t known for half measures, so these policy moves are likely just the warm-up. So if and when the country whips out its big bazooka (oo-er) and fires out cash, even US companies should catch some notes. You might also like: [China keeps coming up short.]( Copy to share story: [/not-so-power-nap]( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Not-So-Power Nap&utm_campaign=daily-global-16-06-2023&utm_source=email) 💬 Quote of the day "Life isn't a matter of milestones, but of moments." – Rose Kennedy (an American philanthropist, socialite, and matriarch) [Tweet this]( SPONSORED BY SWISSQUOTE A portfolio with a purpose It’s never easy watching your investments fluctuate, even if you’ve been doing it for years. But maybe if you knew [your strategy was doing good in the world](, those short-term blips wouldn’t feel as bad. That’s what [Swissquote]( believes, at least. And [Swissquote’s putting its tech]( where its mouth is: you can trade a number of different ways [on the platform](, one of which is based on [ESG (environmental, social, and governance) ratings](. That means you can [pull together a portfolio that’s working for the Earth]( – hello, feelgood factor. Plus, you can specifically [filter out the ones]( you’d rather avoid. So if you want to [give your portfolio a purpose, you could do it with Swissquote](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Jesus is reborn. This creature was also [conceived without a Dad](. 2. Welcome to the inner circle. TikTok's reviving [moon magic](. 3. Sandwiches are out. [Pinwheels]( are in. 4. You would not believe your eyes. If all the [fireflies disappeared from the Earth](. 5. Fewer marriages, more happiness. [One writer]( believes so, anyway. 🌍 Finimize Live 🥳 Coming Up Soon... All events in UK time. 🤔 [What's Next For Crypto Investors](: 7pm, June 19th 🔥 [Co-Trading: A New Way To Beat The Market](: 5pm, June 26th 🚀 [Your Guide To Investing With Artificial Intelligence](: 5pm, July 11th 🙋‍♀️ [Finimize Ladies Investing Club](: 6.30pm, July 13th 🎉 [Modern Investor Summit 2023](: 12pm, December 5th and 6th ❤️ Share with a friend Thanks for reading {NAME}. 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