Financial Markets Daily Report 02 September 2022
Risk aversion continued to set the tone across markets on Thursday, following the imposition of lockdown measures in some big urban areas in China. In the US, new weekly jobless claims and the manufacturing ISM survey surprised positively, which, in turn, exacerbated fears among investors of more aggressive interest rate hikes.
- Risk aversion continued to set the tone across markets on Thursday, following the imposition of lockdown measures in some big urban areas in China. In the US, new weekly jobless claims and the manufacturing ISM survey surprised positively, which, in turn, exacerbated fears among investors of more aggressive interest rate hikes.
- In the eurozone, Bank of Portugal’s governor, Mario Centeno, urged policymakers not to rush into “pro-cyclical measures”, noting that the ECB should be guided by patience ahead of next week’s policy meeting.
- In debt markets, yields on sovereign bonds continued to rise, with the rate in the 10-year Italian bond nearing the 4% level for the first time since June. Stocks fell across the board while the USD appreciated against its peers, trading below parity versus the EUR. In commodity markets, oil prices declined further while natural gas prices ticked up.
- Today, the focus will be on the release of the August employment report in the US.