Financial Markets Daily Report
03 juliol 2026
Financial markets traded mixed on Thursday as softer-than-expected June payrolls slightly reinforced expectations of a less restrictive Fed stance. June non-farm payrolls showed a sharper-than-expected slowdown in job growth, alongside a decline in labour force participation to a five-year low, while Fed’s Daly indicated monetary policy remains moderately restrictive.
Sovereign curves steepened on both sides of the Atlantic, driven by declining short-term yields. Expectations of further ECB hikes also declined, with markets no longer fully pricing a rate hike over the next 12 months. In FX, the dollar weakened against its peers, with the euro appreciating by 0.5%.
Equity markets were mixed: Asian indices fell sharply amid a semiconductor-led sell-off, while European indices rose on expectations of a more accommodative policy stance. In the U.S., the Nasdaq declined while the S&P 500 was broadly unchanged. In commodities, oil was little changed while gold rose, supported by dollar weakness.