Financial Markets Daily Report 23 juny 2022
Risk aversion returned to the fore during a volatile session on Wednesday, as concerns about the health of the global economy, high inflation and monetary policy tightening resurfaced amid hawkish comments by central bank officials.
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- Risk aversion returned to the fore during a volatile session on Wednesday, as concerns about the health of the global economy, high inflation and monetary policy tightening resurfaced amid hawkish comments by central bank officials.
- Giving a testimony before the Senate, Fed chair Jerome Powell reiterated the central bank is committed to bringing inflation back down, recognizing, however, the possibility of a recession and saying a soft-landing is very challenging.
- In the eurozone, ECB VP Luis de Guindos said that inflation is likely to remain above 8% in coming months before slowing after the summer. He echoed the ECB’s commitment to develop a new anti-fragmentation tool soon but acknowledged that the Governing Council has not debated any details of the plan yet.
- In this context, stocks fell across the board, sovereign yields edged down, and oil prices descended further, with the Brent nearing 110 $/barrel. Today the focus will be on the flash PMIs for June across advanced economies.