Resultats de la cerca

Investors closed the week trading more cautiously than in previous days. Negotiations on the US debt ceiling, which had seemingly advanced since Monday, were halted on Friday, causing US stocks to slide after a generally positive session in Europe. Negotiations are set to resume today.

The political impasse over the US debt ceiling continued weighing on investors sentiment in yesterday's session, as staff-level negotiations held on Tuesday yielded little progress.

Signs of disinflationary pressures and a worsening of household and firm’s economic confidence in the euro area were yesterday’s main drivers in financial markets. Investors’ expectation of the official ECB interest rates was revised downwards between 10 and 15bp for 2023 and 2024.

In yesterday's session, investors traded cautiously ahead of a crucial vote in the US House of Representatives to raise the debt ceiling, which was finally approved. Also, disinflationary pressures were made more evident as inflation declined by more than expected in France and Germany while some Fed members insisted on pausing rate hikes.

Investors continued to trade with a positive tone as US Congress passed a law suspending the debt limit until January 1st 2025 and after further evidence of disinflationary pressures in some countries, which, in turn, is likely to lead to lower interest rates than previously expected from central banks.

A subdued session across financial markets at the start of the week, as investors digested a move by some OPEC+ countries for new oil production cuts, disappointing economic sentiment data and a new round of hawkish messages from some key ECB officials, including a call for more policy rate hikes by Christine Lagarde.

Investors traded with a more positive tone on Thursday, taking on board signs of cooling in the US labour market to adjust downwards their expectations for policy interest rates, ahead of next week's monetary policy announcements. 

Yesterday’s session was marked by speeches from several central bankers. In the US, Fed Chairman Jerome Powell noted in his speech to Congress that he would not characterize last week’s decision as a pause, noting that additional 50 bp rate increases are a good guess of where monetary policy is headed, in line with the updated Dot-Plot.

Investors' risk appetite increased on Tuesday as some upbeat economic data in the US (where new-home sales rose at the fastest pace in over a year in May and consumer confidence rose to its highest level since early 2022 in June) balanced out a fresh round of hawkish comments from several central bank officials.

Investors continued to err on the side of caution, taking on board yet another round of hawkish signals from central bankers and incoming data pointing to lingering inflationary pressures and a strong US economy.

Investors started the week trading with a more subdued tone, with sentiment soured by data showing a slowdown in China in Q2 and by lingering inflationary concerns on the back of upside tensions in some agricultural prices.

Investors started the week trading cautiously in a relatively quiet session, as they awaited for key economic data due to be released this week (e.g.: August euro area inflation and US labor market report).

Sovereign bond yields rose across Europe yesterday after an ECB survey showed consumer expectations for inflation edged up, which could pressure the ECB for further rate hikes. Inflation concerns were also stoked by Brent crude oil reaching a new year high after Saudi Arabia and Russia announced an extension of supply curbs through year's end.

Yesterday’s session saw subdued trading volumes and a risk-off sentiment. In the Eurozone, the downward revision of Q2 GDP growth figures prompted sovereign bond yields to fall. Renewed signs of industrial weakness in Germany stoked concerns of economic malaise and pushed down stocks as well.

In yesterday's session, the US CPI report of August centered the stage in financial markets. Headline inflation surged from 0.2% m/m to 0.6% due to an increase in gasoline prices- (3.7% y/y) while core inflation ticked modestly up from 0.2% m/m to 0.3% (4.3% y/y).

Financial markets ended the week digesting Thursday’s ECB rate decision. If investors initially interpreted Lagarde’s speech as implying a slightly dovish bias going forward, several ECB officials pushed back against such interpretations on Friday, pushing European sovereign bond yields up, peripheral spreads to widen, and a steepening of the curve.

Financial markets ended the week giving mixed signals from both sides of the Atlantic. In Europe, flash PMI data for September showed a slight improvement in business activity, albeit still signalling economic contraction amid a weak German manufacturing sector, pushing up government bond yields and dragging most equity indices lower.

Stock markets advanced in the US, Europe and Asia while sovereign yields remained stable. In Spain, markets underperformed their peers as stocks declined and sovereign spreads rose.

Investor sentiment improved amid diplomatic efforts to avoid the Israeli-Hamas conflict from spreading in the Middle East, with US Secretary of State Blinken arriving in Israel for talks and both President Biden and German chancellor Scholz planning a visit later this week.

In yesterday’s session, investors traded with mixed sentiment as they navigate through heightened tensions in the Middle East and a continued rhetoric of “higher for longer interest rates” supported by strong US economic data. President Biden arrived in Israel but has not been able to achieve major diplomatic breakthroughs to calm markets.