Financial Markets Daily Report

Financial Markets Daily Report
29 July 2022

Investors continued to readjust their expectations about the future pace of monetary policy tightening, after data showed real GDP fell by 0.2% q/q in the US in Q2, the second consecutive quarterly decline.

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  • Investors continued to readjust their expectations about the future pace of monetary policy tightening, after data showed real GDP fell by 0.2% q/q in the US in Q2, the second consecutive quarterly decline.
  • In addition, the economic sentiment indicator in the eurozone dropped in July to 99.0, the lowest level since early 2021, while HICP inflation in Germany surprised to the upside (8.5% y/y in July after 8.2% in June). Today, both the flash Q2 GDP and July’s HICP inflation will be released for the eurozone.
  • In this context, sovereign bond yields continued to edge down, more notably in the short end of the curve. Equity prices rose strongly, except in the banking sector. In commodity markets, European natural gas prices stabilized around 200 EUR/MWh while oil prices continued to increase, nearing the 110 USD/barrel for the Brent.
  • The next publication of the Financial Markets Daily Report will be on August 29.
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