Financial Markets Daily Report02 July 2021
Investors’ morale improved again on the back of solid economic data reports. June PMI and ISM data in the euro area and in the US reflected that economic growth is gaining momentum and most manufacturing indices remained above the 60 points (EZ at 63.4, US ISM at 60.6, Spain’s at 60.4, +1 pp from the previous month).
- Investors’ morale improved again on the back of solid economic data reports. June PMI and ISM data in the euro area and in the US reflected that economic growth is gaining momentum and most manufacturing indices remained above the 60 points (EZ at 63.4, US ISM at 60.6, Spain’s at 60.4, +1 pp from the previous month).
- Although there are some signs that supply bottlenecks might be starting to ease (the US supplier deliveries time index dropped to 75.1 from 78.8), most respondents in both sides of the Atlantic continued to warn about the increase in production prices. Adding to these concerns, oil prices rose amid OPEC+ difficulties to agree on an increase in supply.
- In this context, stock indices rose across the board while, in fixed-income markets, yields on 10-year sovereign bonds edged slightly down and euro area peripheral spreads narrowed.
- Today, the focus will be on June's US employment report and on the outcome of the OPEC+ meeting.